- SWFX market sentiment is 59% bearish
- 58% of pending orders in 100-pip range are set to SELL
- 64% of pending commands are set to sell the Euro
- Upcoming Events: US Import Prices and Crude Oil Inventories
The Euro continued to lose value against the Dollar, as expected. Despite the barrier set by the monthly PP, the pair is expected to continue moving towards the 61.8% Fibonacci retracement level located at 1.1887.
German industrial output and the country's exports grew more than anticipated in November, suggesting lingering expansion in the Europe's biggest economy in this year, ignoring political deadlock, when new coalition government was not formed. Industrial production gained 3.4% in November, the strongest gain since late 2009, the Federal Statistics Office reported. Meanwhile, exports increased at a seasonally adjusted 4.1% pace, while imports added 2.3% in the same month. Both readings pushed the trade surplus to €22.3B from €19.9B registered in October.
No significant releases
There are no fundamental events planned for today that could cause notable volatility in the markets.
EUR/USD expectedly slides to monthly PP
The appreciation of the Dollar continued on Tuesday, as expected. After reaching support level set up by the monthly PP at 1.1917 the currency rate resumed the surge. However, recovery of the Euro is unlikely to last for long due to resistance formed, first, by the weekly S2 and the 55-hour SMA and, second, by the weekly S1 in conjunction with the 100- and 200-hour SMAs. From daily perspective, the pair is expected to continue moving towards the lower boundary of a three-month long ascending channel. In support of this assumption, two-thirds of all pending orders in both in 50- and 100-pip range are set to sell. Nevertheless, there is a need to take into account that the 61.8% Fibonacci retracement level located at 1.1887 might temporarily halt the downfall.Hourly Chart
In the end of previous trading session the currency rate has expectedly reached the monthly PP at 1.1917. Accordingly, after minor correction the pair is expected to continue moving downwards, trying to reach the 61.8% Fibonacci retracement level located at 1.1887.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has decreased, as 59% 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 64% bearish and the Dollar is 57% bullish.
Traders of OANDA remain bearish, as 61% (-4%) of open positions are short. SAXO Bank clients are likewise bearish on the pair with 59% (-1%) short positions.
Spreads (avg, pip) / Trading volume / Volatility