- SWFX market sentiment is 58% bearish
- 54% of pending orders in 100-pip range are set to BUY
- Significant support is located near 1.1930
- Upcoming Events: German Prelim CPI m/m
The US Dollar weakened against the Euro on the US Chicago PMI report, but temporarily changed the direction to touch the 1.1937 mark. The EUR/USD was under less apparent bullish sentiment to continue consolidation at the 1.1945 level.
Factory activity in Chicago strengthened again by the end of the year, according to the MNI survey. Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Lack of fundamentals
The only fundamental events for today is the German preliminary CPI for the month of December. The release time, however, is not set.
EUR/USD tests wedge boundary
After bouncing off the 61.8% Fibo retracement at 1.1887 late on Wednesday, the broadly-base weakness of the US Dollar allowed the Euro to close Thursday's trading session with a 55-pip gain. The second part of the session, however, did not show much change in the pair's direction, as it remained fluctuating in the 1.1940/60 area during this time.Even though some technical indicators are still flashing strongly bullish signals, the rate is unlikely to surge massively. The nearest resistance—the weekly R3 located at 1.1982—could be the ultimate daily high for today.
Meanwhile, the rate should edge lower in line with the aforementioned wedge. This fall, however, is not expected to be significant, as its lower boundary is supported by the weekly R1 and the 55-hour SMA circa 1.1920.
Hourly Chart
The common European currency continues to appreciate against the Greenback for the third consecutive session. As apparent on the daily chart, the pair has been appreciating during the past two weeks in line with a channel up. Thus, it is likely that rate could still be tended north next week.
In terms of this session, the Euro is stranded between the weekly R1 and R2. This range is expected to hold in this session.
Daily Chart
Market sentiment is bearish
In result of the previous trading session, the bearish market sentiment has remained at the same level, as 58% of open positions are short.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 63% bearish and the Dollar is 55% bullish.
Traders of OANDA remain bearish, as 63% of open positions are short (unchanged from Thursday). SAXO Bank clients are likewise bearish on the pair with 63% short positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility