- SWFX market sentiment is 58% bearish
- 63% of pending orders in 100-pip range are set to BUY
- 54% of traders are bullish on the Dollar
- Upcoming Events: ISM Manufacturing PMI, FOMC Members Kaplan and Harker Speak
In result of the previous trading session, the currency rate made a rebound from the 200-hour SMA and began to surge towards the 1.1940 mark. By the end of the day it is expected to reach the upper boundary of a larger descending channel. If bullish pressure prevails, the pair might event break further.
The Greenback made the last attempt to rise against the Yen before falling sharply on non-negative US economic data. The USD/JPY added 5 base points, ahead of the sharp fall to the 111.74 area. However, bulls put the pair back to the pre-data level of 112.60.
US consumer inflation growth weakened in October, as the hurricane-related increase in purchases of motor vehicles started to fade. The Fed's closely watched inflation measure, the Core PCE Price Index excluding energy and food increased 1.4% year-over-year in October, though the figure undershot the bank's 2% target for more than 5 years. Recent economic data strengthened projections for the Fed to raise borrowing costs once again in December.
Manufacturing data release
The only macroeconomic data release that might cause some volatility in the markets will happen at 15:00 GMT when the Institute for Supply Management will publish its survey on the US Manufacturing PMI.
EUR/USD prepares to hit 1.1940
In line with expectations, in first half of previous trading session the pair slipped to the bottom and, after finding support at the 200-hour SMA that was located slightly above the lower trend-line of a junior ascending channel, resumed an active surge. By this morning, the currency rate has crossed practically all notable resistance levels. The only area left untested is located at the 1.1936 mark. Nevertheless, it is unlikely to stop the pair from reaching the upper boundary of a senior descending channel near 1.1940 by the end of the day. But even in case bears take the lead, for instance, after release of better than expected information on the US ISM Manufacturing PMI, combined support level formed mainly by the 100-hour SMA but also by the 61.8% Fibonacci retracement level is expected to neutralize the plunge.
Hourly Chart
On daily chart the pair is about to reach the upper trend-line of a large descending channel. At the moment, there are no obstacles that can prevent rate from reaching this goal. In this sense, the 61.8% Fibonacci retracement level located at 1.1887 is expected to provide additional support for today's surge.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment slightly decreased, as 58% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 65% bearish and the Dollar is 54% bullish.
Traders of OANDA remain bearish, as 58% (+0%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 60% (+3%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility