- SWFX market sentiment is 63% bullish
- 61% of pending orders in 100-pip range are to SELL the Euro
- Bank Holiday in the US
It seems that the 100-hour SMA at 1.1725 is likely to provide strong resistance in this session.
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.
Calm day
This session is expected to be uneventful in terms of data releases, as banks in the US are closed due to Memorial Day.
EUR/USD opens higher this week
The pair is generally expected to recover this week, so this moving average and the nearby-located 200-hour SMA should be surpassed. Today's target is the 1.18 mark. However, it should likewise be noted that the Euro remains exposed to political developments in Italy that could have negative impact on the pair negatively, resulting in a fall down to the weekly S1 at 1.16 today.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks.
As apparent on the daily chart, this bearish momentum has allayed during the past two weeks, thus pointing to a soon change in direction. Technical indicators are likewise starting to stabilise in the oversold territory.
The nearest support is provided by the monthly S3 at 1.16. This level should not be breached.
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 61% bearish.
OANDA traders are incrasingly bullish on the Euro with 57% of open positions being long today (+2%). Meanwhile, the market sentiment of Saxo bank clients is 51% bearish.
Spreads (avg, pip) / Trading volume / Volatility