- SWFX market sentiment is 59% bullish today
- Pending orders in the 100-pip range are neutral
- No more data impacting this rate
The rate has continued to trade near the 1.16 mark. Although the EUR/USD faced no technical resistance, the 1.16 level on its own acts as a resistance.
On Monday, the European Single Currency depreciated against the US Dollar, following the US Retail Sales data release on Monday at 12:30 GMT. The EUR/USD exchange currency rate lost 6 pips or 0.05% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1625 area.
The Census Bureau released US Retail Sales data that came out lower-than-expected of 0.1% compared with forecasted 0.7%.
Ellen Zentner, chief U.S. economist at Morgan Stanley in New York said: "Retail sales for food services and drinking places may have been impacted by the hurricane in September, as consumer confidence remained solid during the month, which in our view suggests underlying consumer demand should remain intact,".
No more data impacting the EUR/USD
For the rest of the week there will be no macroeconomic data releases that might influence the EUR/USD.
Although, macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.
Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
The data release is expected to cause a sudden bounce in the USD of almost 80 base points.
EUR/USD short term review
After breaking the 55-hour SMA the EUR/USD attempted a surge. However, it failed to properly pass the resistance of the 1.16 mark. That level gives an opportunity to chart the recent fluctuations.Namely, a channel has been charted. Although, note that it just shows that the currency rate needs more support to surge up to the 1.1640 mark.
Hourly Chart
On the daily chart one can observe that the currency rate on Monday was squeezed in between the 55-day simple moving average at 1.1590 and the weekly PP.
Combine the daily and the hourly chart to understand the short term movements this week of the EUR/USD. If one does not do that, sudden surprises might occur.
Daily chart
On Tuesday, traders continued to hold mostly long positions, as 59% of all open positions on the Swiss Foreign Exchange were long.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, and position opening orders were set to sell in 53% of all cases.
In general, almost nothing had changed since Monday besides some traders opening buy orders and some removing their sell orders.