- SWFX market sentiment is 64% bullish
- 59% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: ECB Forum with Draghi, Lowe, Kuroda and Powell speaking, US Current Account and Existing Home Sales
The Euro still remains weak, thus trading near its one-year low.
The Greenback strengthened against the European single currency, following the US Building data release on Tuesday. The EUR/USD currency pair lost two pips, or 0.02%, to continue fluctuating in the 1.5596 area.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
ECB Forum
The main fundamental event in this session is a panel discussion at the ECB Forum on Central Banking which will include the following speakers: the RBA Governor Philip Lowe, the ECB President Mario Draghi, the BOJ Governor Haruhiko Kuroda and the Fed Chief Jerome Powell. This session will start at 1330GMT.
Meanwhile, some minor data from the United States are likewise released today, namely, the quarterly Current Account and the monthly Existing Home Sales at 1230GMT and 1400GMT, respectively.
EUR/USD returns near one-year low
EUR/USD has been ranging for the third consecutive session with a slight tendency southwards. Despite moving above the 55-hour SMA early on Tuesday, the Euro failed to accelerate and thus back south at 1.1650. By this morning, the rate was trading near its one-year low of 1.15.Even tough technical indicators are steadily recovering, the price has failed to pick up this bullish momentum. It is likely that the first part of the day is spent calmly due to 55– and 100-hour SMAs pressuring the rate from above at 1.16.
This resistance should eventually be breached to allow for a test of the 1.17 mark which should mark today's highest price, as it is strengthened by the 200-hour and 55– and 100-period (4H) SMAs.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks. The pair started to recover on May 30 after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term.
The 1.18 mark should eventually surrender, thus allowing the pair to appreciate until the 55- and 200-day SMAs and the monthly R1 near 1.20. Daily technical indicators are likewise pointing to a soon recovery.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 64% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 57% bullish and the US Dollar is 62% bearish.
OANDA traders are bullish on the pair with 54% of open positions being long today (-3%). Saxo bank is likewise standing in the bullish territory with 55% long positions.
Spreads (avg, pip) / Trading volume / Volatility