- SWFX market sentiment is 60% bullish
- 53% of pending orders in 100-pip range are to SELL the Euro
- G7 summit to start today
This session might be led by the 55-hour SMA.
The Markit released Manufacturing Purchasing Managers Index data that came out better-than-expected of 54.4, compared to the 53.9 in the previous period.
"At first glance, the mild acceleration in the rate of output growth and rise in the headline PMI would appear positive," Rob Dobson, a Markit director, said. "However, scratch beneath the surface and the rebound in the PMI from April's 17-month low is far from convincing."
G7 summit
The G7 summit is to start today and continue until late Saturday. This fundamental event might cause turbulence in the market, as tough talks on trade, tariffs and other major issues are expected to be among topics put on the table.
EUR/USD: advance continues
The Euro has maintained its upward tendency for the third consecutive session. Despite edging higher on Thursday morning, the Euro had lost all of its daily gains by the evening. The pair continues to trade in an ascending channel. However, it failed to reach the upper channel line yesterday prior to returning back to the 55-hour SMA.From technical point of view, some slight movement north should still be apparent today until the 1.1855 mark, which is limited by the 200-period (4H) SMA and the weekly R2, is reached. Meanwhile, the 55– and 100-hour SMAs are likely to restrict a fall below 1.1750.
This session should be fundamentally calm; however, some turbulence may be caused by the G7 summit which is expected to address the new US tariffs.
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.
The pair started to recover during the second part of last week after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term. The nearest support level is the weekly R1, the monthly PP and the 23.60% Fibonacci retracement. By and large, the Euro should continue its appreciation until the 200-day SMA near 1.2050 is reached.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 60% 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 54% bullish and the US Dollar is 58% bearish.
OANDA traders are bullish on the Euro with 52% of open positions being long today (-6%). Meanwhile, the market sentiment of Saxo bank is 53% bearish (-1%).
Spreads (avg, pip) / Trading volume / Volatility