- SWFX market sentiment is 63% bullish today
- 57% of pending orders in the 100-pip range are set to SELL
- Empty economic calendar
On Thursday, the EUR/USD currency exchange rate continued its retreat after bouncing off the resistance of the 1.16 mark. During the morning hours of the day's trading session the pair was bouncing around the 55-hour simple moving average near the 1.1560 level.
The Greenback weakened against the European Single Currency, following the United States Building Permits release on Thursday at 12:30 GMT. The EUR/USD currency pair 1 minute candle gained only 4 pips, or 0.03% at the release time, but combined with the buying action occurring before the data was released, there was a surge of 17 pips or 0.15% in total.
The Census Bureau released US Building Permits data that came in line with expectation of 1.30 Million. There was no change between actual and forecasted data this time.
Scott Volling, principal at PricewaterhouseCoopers said: "June appeared to be an anomaly, but July results indicate a trend. With permits still fairly solid, we will need to see if the trend continues into the late summer/early fall or if recent permits translate to stronger starts in the coming months ".
Empty trading day for data releases
There are no notable macroeconomic data publications scheduled for Thursday's trading session. Although, note that on Friday there are two very important events scheduled.
Most notable of the two is the scheduled speech of the head of the Federal Reserve Jerome Powell at the Jackson Hole Symposium at 14:00 GMT.
Meanwhile, macroeconomic data release traders will pay most attention at 12:30 GMT on Friday. At that time the US Durable Goods Orders data sets will be published. The event will be covered by Dukascopy Analytics on the bank's live webinar platform. The cover will start at 12:20 GMT.
EUR/USD returns to 1.1550
EUR/USD did not gain major positions in any direction on Wednesday, as the mid-session advance north was already erased by the end of the day. The rate managed to re-test the upper channel line and the weekly R3 at 1.1633 prior to falling down to the 55-hour SMA near 1.1550 this morning.Given that no significant data releases are scheduled, the Euro could remain rather stable today in between the monthly S1 and S2 at 1.1580 and 1.1470, respectively. Further fall is unlikely due to the area being reinforced by the 200-hour SMA.
Meanwhile, the senior channel and the monthly PP are located at 1.1660.
Hourly Chart
The currency exchange rate still remains in the boundaries of a dominant descending channel pattern. Watch its upper trend line, which might provide the needed resistance to stop the surge and force the Euro down against the US Dollar.
Daily chart
On Thursday, SWFX market sentiment remained 63% bullish. Previously, some retail traders closed their long positions and took profit at the 1.16 mark.
Meanwhile, 63% of Swiss trader set up orders are set to sell. These orders are considered normal, as all of the long positions have a take profit and stop loss orders. Moreover, some might be looking for a retracement downwards that would occur after the surge.
The bearishness of other market places increased on Thursday. Namely, Oanda traders were 58% short and SAXO bank's sentiment was 53% short.
Spreads (avg, pip) / Trading volume / Volatility