- SWFX market sentiment is 58% bullish today
- Pending orders in the 100-pip range are set to buy in 60% of cases
- US ADP Employment and ISM PMI on Wednesday
On Tuesday, the EUR/USD fell down to the 1.1510 mark, where a weekly support level was located at. However, as the rate had declined down for the fifth consecutive trading session, a short term sideways trading or surge upwards was expected.
The European Single Currency appreciated against the US Dollar, following the US ISM Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD exchange currency rate gained 5 pips or 0.04% during a minute, right after the release. In the next minutes the rate was trading at the 1.1595 area.
The Institute for Supply Management released the US ISM Manufacturing PMI data that came out lower-than-expected of 59.8, compare to forecasted 60.1.
Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management says: "Export orders expanded, but four major industries are no longer contributing. Price pressure continues, but the index softened for the fourth straight month and dropped below 70 for the first time since December 2017. Demand remains robust, but employment resources and supply chains continue to struggle, but to a lesser degree. "
US data will start on Wednesday
This week will be a busy one for macroeconomic data release traders. There will be notable data releases on Wednesday and Friday in the US that will impact the strength of the US Dollar and with it all of the currency pairs where it is involved.
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change will be published. On the same day the ISM Non-Manufacturing PMI will be released at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform.
In addition, most macro release traders will be paying attention to the UK Services PMI data release on Wednesday. The data release will occur at 08:30 GMT on Wednesday, and it will also be covered on the bank's live webinar platform.
Meanwhile, all traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
EUR/USD short term review
In regards to the near future, the rate will keep moving downwards until the currency pair will reach the weekly S1 at the 1.1511 mark. Most likely, the rate will bounce off the weekly S1 due to its support. The rate might trade at the 1.1500 level on Tuesday.Besides, none of the technical indicators can prevent the trading pair from downside movements during the trading session.
Hourly Chart
If one examines the daily chart, it can be observed that the currency exchange rate has declined since the US Federal Funds Rate hike. The basis for it is the decreased supply of the US Dollar that is strengthening its worth.
The market is taking in these news. Namely, large scale funds are adjusting their positions.
Most likely when this descent that is occurring at the moment ends, there will be a reversal of the rate that will provide a reference point for charting a new pattern.
Daily chart
On Tuesday, 58% of Swiss Foreign Exchange Traders were already long. Most likely they have already bought the EUR/USD, when it hit the support levels at 1.15.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, sell and buy orders were set to sell in 56% of all cases.
This amount is normal, as the 58% of open long positions have set up pending stop losses and take profits.