- SWFX market sentiment is 65% bullish today
- Pending orders in the 100-pip range are 55% to sell
- Traders wait for Friday's US Employment data
On Thursday the EUR/USD bounced off the support levels near 1.1310. Meanwhile, note that the hourly chart has been redrawn by taking into account newly available reference points.
The European Single Currency depreciated against the US Dollar, following the US ADP Non-Farm Employment Change data release on Wednesday at 12:15 GMT. The EUR/USD exchange currency rate lost 9 pips or 0.08% during a minute, right after the release. The European Single Currency continued trading at the 1.1323 area.
The Automatic Data Processing, Inc. released US ADP Non-Farm Employment Change data that came out better than expected of 227K, compare to forecasted 188K.
"Despite a significant shortage in skilled talent, the labour market continues to grow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "We saw significant gains across all industries with trade and leisure and hospitality leading the way. We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire."
Markets will await for Friday
The only notable event scheduled this week that is expected to impact the EUR/USD currency exchange rate will be published on Friday.
Namely, the US Employment data sets will be published at 12:30 GMT. The Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate will be released at that time.
The data release will be covered by the Dukascopy Analytics team live. Join the webinar platform or Dukascopy Webinars YouTube channel's live stream at 12:20 GMT to see the coverage.
EUR/USD short term review
In the near future the EUR/USD is set to reach for the combined resistance of the 200-hour SMA and a descending channel's upper trend line near the 1.1400 mark. If this level is passed, the rate would surge to the 1.1413 level, where the monthly PP is located at.On the other hand, the rate might bounce off the resistance level, which is more likely. In that scenario the pair would decline back down to the 100-hour simple moving average near the 1.1360 mark.
Hourly Chart
On the daily chart it can be observed that the currency exchange rate bounced off the lower trend line of a dominant descending channel pattern.
Due to that reason it is possible that a surge to the upper trend line of the pattern would begin. Although, the rate is more likely going to trade sideways, as there are strong resistance levels located above the 1.14 mark.
Daily chart
On Tuesday, 65% of traders were long on EUR/USD. Previously, since Monday 63% of traders were long.
Meanwhile, traders had their pending orders set up mostly to sell the EUR/USD, as 59% of all trader set up orders were set to sell the pair.
Traders, who expected the rebound of the EUR/USD, were finally gaining profits on Thursday. Although, most were prepared to sell the pair by closing long positions and opening short positions.