- SWFX market sentiment is 53% bearish today
- Pending orders in the 100-pip range are 56% to sell
- US elections are over
As the Democrats won dominance in the US House of Representatives in the yesterday's Congressional elections, the US Dollar lost value. Mainly, because Democrat policies hurt the economy and investment into the US is expected to decline. Meanwhile, it was noticed that Dukascopy traders have mostly profited from the event.
The European Single Currency depreciated against the US Dollar, following the US Unemployment Rate data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 17 pips or 0.15% during a minute, right after the release. Afterwards, the European Single Currency continued trading at the 1.1415 area against the US Dollar.
The Bureau of Labor Statistics released US Unemployment Rate that came out in line with expectations of 3.7%. In addition, the Non-Farm Employment Change together with the Average Hourly Earnings m/m data release came out also at 12:30 GMT.
The Bureau of Labor Statistics noted: "Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing".
Quiet week for macroeconomic data releases
All of this week's events, which are worth mentioning, are described below
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
EUR/USD daily review
In regards to the near-term future, most likely, the currency exchange rate will be retraced by the bottom boundary of the medium ascending pattern line at 1.1480 to pass through the monthly pivot point at the 1.1413 mark.However, the rate could break the resistance of the medium pattern line at 1.1480 due to the support of the SMAs to push the rate to trade at the 1.1500 level.
Hourly Chart
The upper boundary of a junior pattern, which was expected to be broken, was passed on Wednesday, as the rate surged above the 1.1425 level.
However, that does not mean that the EUR/USD is set to surge. The currency exchange rate still faces technical resistance levels at 1.1427, 1.1450 and 1.1500. Instead it is more likely that the currency exchange rate will decline or trade sideways.
Daily chart
On Tuesday, 68% of traders were long on EUR/USD. By the middle of Wednesday's trading session the sentiment was 52% long.
Meanwhile, traders had their pending orders set up mostly to sell the EUR/USD, as 55% of all trader set up orders were set to sell the pair.
It could be observed that traders gained during the jump of the EUR/USD and took profits form the bet that the Democrats will win the US elections.