- SWFX market sentiment is 63% bullish
- 56% of pending orders in 100-pip range are to SELL the Euro
- Quiet day in terms of fundamentals
- Upcoming fundamentals: Flash Manufacturing PMI, Flash Services PMI, FOMC Meeting Minutes
The Euro remains restricted from the upside by the 55- and 100-hour SMAs for the third consecutive day.
The Greenback weakened against the Eurozone's single currency, following US Retail Sales data release on Tuesday. The EUR/USD currency pair gained only 2 pips, or 0.02%, to continue fluctuating in the 1.1805 area.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
FOMC Meeting Minutes
Markit is set to publish the Euro zone's Flash Manufacturing PMI and Flash Services PMI at 0800GMT, while the most noteworthy fundamental event in this session is the FOMC Meeting Minutes released at 1800GMT.
EUR/USD returns below SMAs
Even though the Euro managed to surpass the 100-hour SMA on Tuesday morning, further advance did not follow, thus leading the rate back in the narrow range between the 100– and 55-hour moving averages. A breakout of the former occurred early in the Asian session.It is apparent that the pair's movement during the previous two days has been tended towards the more senior channel and the 200-hour SMA at 1.1825. This mark is the most probable upside target for today if the 1.1785 area is breached within the nearest hours.
However, technical indicators flash bearish signals in line with which the Euro should approach the six-month low of 1.1719 and edge even lower down to the weekly S1 at 1.1685. FOMC Meeting Minutes are published later in the day at 1800GMT.
Hourly Chart
The common European currency continues to fall against the US Dollar for the third consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
Even if some bearish sentiment is still to prevail this week, the 38.20% Fibonacci retracement at 1.1740 is unlikely to be breached before the pair starts a new medium-term surge.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 63% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 58% bullish and the US Dollar is 62% bearish.
OANDA traders remain bullish with to 57% of open positions being long today (+3%). Meanwhile, Saxo Bank has changed its sentiment to bearish, as 51% of open positions are now short.
Spreads (avg, pip) / Trading volume / Volatility