- SWFX market sentiment is 52% bullish today
- Pending orders in the 100-pip range are neutral
- FOMC Meeting Minutes release at 19:00 GMT
The Euro jumped on Wednesday afternoon, crashing technical charts. Namely, the currency exchange rate jumped up to the 1.14 mark in the matter of two hours. After the jump the currency exchange rate retraced back downwards on Thursday.
The European Single Currency depreciated against the US Dollar, following the US Prelim GDP data release on Wednesday at 13:30 GMT. The EUR/USD exchange currency rate lost 2 pips or 0.02% during a minute, right after the release. The European Single Currency continued trading at the 1.1276 area against the US Dollar.
The Bureau of Economic Analysis released US Prelim GDP data that came out lower than expected of 3.5 compared with forecasted 3.6%.
The Bureau of Economic Analysis noted: "Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the "second" estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the "advance" estimate released in October. In the second quarter, real GDP increased 4.2 percent. "
US FOMC Meeting Minutes late in the evening
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
These events will be covered live by Dukascopy Analytics. The live coverages will begin ten minutes before the event. They can be watched on the Dukascopy Webinars platform and the YouTube channel.
EUR/USD daily review
During Wednesday's trading session, the currency exchange pair broke most of the technical indicators to appreciate by 103 pips or 0.91%. During Thursday morning hours, the rate was trading near the weekly pivot point at the 1.1371 mark.In regards to the near-term future, the currency exchange rate might trade sideways due to a lack of any fundamental news which could affect the rate. Most likely, the rate will be trading between the weekly pivot point at 1.1380 and the monthly pivot point at the 1.1413 during the trading session on Thursday.
However, the European Single Currency could pass through the support of the 200-hour simple moving average to trade at the 1.1340 level during the day.
Hourly Chart
On the daily chart the currency exchange rate remains in the borders of the descending channel pattern. The surge did not break it. In the longer term the decline is still expected to occur.
Daily chart
Previously, traders were 52% short on the pair. On Thursday, that had changed, as 52% of traders were long by the middle of the day's trading session.
In the 100-pip range trader pending orders were no longer set to sell, as they had become neutral.
The slow short has ended. Traders have opened long positions and cancelled their pending sell orders. In general, it seems that traders are waiting for the volatility to pass over.