- SWFX market sentiment is 56% bearish
- 53.85% of pending orders in 100-pip range are set to SELL
- Pair opened Monday's session at 1.1765
- Upcoming Events: Quiet Monday
The common European currency continues to trade against the US Dollar in the medium term descending channel pattern. On Monday morning the pair had two options. TO surge or to decline. The reason was the fact that the new week had created a strong resistance level above the currency exchange rate.
The weekly report on the US unemployment claims provided temporary support for the US dollar during the Thursday's session. The Greenback rose against the Euro by 10 base points to reach the 1.1687 mark. However, the Euro was capable of maintaining strong position until Friday's morning to continue trading above the 1.1735 level.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week. The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
A day off for Swing Traders
On Monday there are no notable data releases scheduled, which might affect the financial markets. Moreover, Tuesday's trading session also seems to be almost empty. However, on Wednesday morning, at 07:00 GMT ECB President Draghi will give a speech.
EUR/USD stuck around 1.1750
In line with expectations, the EUR continued to advance against the USD until the pair has encountered a combined resistance level set up by the updated weekly PP and the 200-hour SMA. As a result, the currency rate has stuck near the 1.1750 level.
Nevertheless, the surge is expected to continue, as the pair has no barriers on its way up until the weekly R1 at 1.1846, while from the bottom it experiences certain pressure from the 55- and 100-hour SMAs.
In the meantime, it should be noted that an area near the 1.1810 mark represents a location of the medium-term descending channel's upper boundary, which most likely is going to turn around the exchange rate.
Hourly Chart
The Daily chart reveals that the pair faces additional resistance from the 20-day SMA at the 1.1765 level. Moreover, the pair faces the support of the 200-day SMA, which on Monday morning was moving higher near the 1.1670 mark.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 56% short. Meanwhile, on Monday 50.41% of pending commands are to sell, compared to 53.25% of buy orders previously.
Traders of OANDA remain largely bearish, as 67.77% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 60.90% of traders are short, compared to 60.21% previously.
Spreads (avg, pip) / Trading volume / Volatility