- SWFX market sentiment is 62% bullish
- 54% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: FOMC Member Bostic to speak, US CB Consumer Confidence
The Euro faces a strong resistance level which could reverse the pair back to the downside.
The Greenback strengthened against the European single currency, following the US Building data release on Tuesday. The EUR/USD currency pair lost two pips, or 0.02%, to continue fluctuating in
the 1.5596 area.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
US CB Consumer Confidence
The main fundamental event in this session is the US Consumer Confidence released by The Conference Board at 1400GMT. Moreover, the President of the Federal Reserve Bank of Atlanta Raphael Bostic is due to speak at the Birmingham Civil Rights Institute at 1700GMT.
EUR/USD unlikely to surpass resistance
The common European currency continues to strengthen against its American counterpart in a short-term ascending channel.The pair managed to accelerate from the 200-hour SMA on Monday, and it was trading at the 1.1720 mark early today. This 1.1740/50 range coincides with the weekly R1, the upper boundary of a four-month channel down, a historically strong support/resistance level and the 200-period (4H) SMA.
The Euro has returned to the overbought territory, and technical indicators flash strong bearish signals. Thus, the 1.1750 area is expected to be a point of reversal that should pressure the rate lower down to the 55-, 100– and 200-hour SMAs near 1.1630.
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 on May 30 after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term.
The pair has fluctuated in the 1.1545/1.1800 range since mid-May. The 1.18 mark should eventually surrender, thus allowing the pair to appreciate until the 200-day SMAs and the monthly R1 near 1.20.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 62% of open positions being long for the second consecutive session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 56% bullish and the US Dollar is 61% bearish. The data indicates that the surge of the currency exchange rate occurs due to changes in the strength of both currencies simultaneously.
OANDA traders are bullish on the pair with 55% of open positions being long today (-4%). Saxo bank is likewise standing in the bullish territory with 52% long positions (+2%).
Spreads (avg, pip) / Trading volume / Volatility