- SWFX market sentiment is 52% bearish today
- Pending orders in the 100-pip range are 57% to buy
- No more relevant data releases this week
Previous forecast did not become reality. After a third attempt o reach above the resistance levels just above the 1.1400 mark, the EUR/USD plummeted. Namely, it dropped like a brick in a pool. From 1.1420 to 1.1365 just in an hour. Moreover, by the middle of Friday's trading the pair had touched the 1.1340 mark.
The European Single Currency appreciated against the US Dollar, following the US Durable Goods Orders data release on Wednesday at 13:30 GMT. The EUR/USD exchange currency rate gained 6 pips or 0.06% during a minute, right after the release. The European Single Currency continued trading at the 1.1400.00 area against the US Dollar.
The Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
Canadian CPI is the last notable release this week
Note that on Friday at 13:30 GMT the Canadian CPI and Core Retail Sales data will be published. This event is expected to cause immediate fluctuations in the strength of the Canadian currency.EUR/USD daily review
On Friday, the currency exchange rate will trade sideways between the 100-hour and the 200-hour SMAs to stay at the 1.1380 level. The 200-hour simple moving average will try to support the rate from fall for the rest of the trading day.However, the rate could pass through the support of the 200-hour simple moving average to trade near the weekly pivot point at the 1.1352 mark.
Hourly Chart
Note that the recent surge above the 1.1400 mark has provided another reference point that can be used to adjust the long term descending channel pattern.
In general, it is expected that the decline will continue in the borders of the pattern.
Daily chart
Traders have shorted the EUR/USD in the past 24 hours. Namely, 54% of trader open positions were short on Friday, compared to 51% short positions on Thursday.
Previously, 60% of all trader set up orders were to sell. The traders have executed these orders by opening short positions, as on Friday only 55% of orders were left short.
In general, traders sold the EUR/USD when it failed to break the technical resistance. Although, note that the selling might not be over, as most pending orders are still set to sell the pair.