- SWFX market sentiment is 59% bearish
- 51% of pending orders in 100-pip range are set to BUY
- 55% of traders are bullish on the Dollar
- Upcoming Events: Day of silence
In result of continuous tensions on the Iberian Peninsula, anticipation of the ECB meeting and conduction of two non-binding referendums on independence in Northern Italy, the Euro depreciated against the Dollar and slipped through all three moving averages. For this reason, the pair is expected to continue moving in the southern direction at least until the clash with the bottom trend-line of an ascending channel near 1.1750.
The EUR/USD currency pair revealed a modest reaction on the US economic reports showing some positive changes in the US existing home sales. The Euro lost against the US Dollar just 4 base points to continue slipping further into the 1.1770 area.
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September. The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, weak affordability is likely to keep prices high confusing considerable buyers' interest throughout the US.
Empty day
According to economic calendar, there are no notable data releases scheduled for today.
EUR/USD trades near 1.1760
Due to anticipation of the ECB meeting as well as referendum on extension of autonomy in Lombardy and Veneto regions the common European currency slipped against the Dollar to the 1.7520 mark. As the northern side is protected by a combination of the 100-hour SMA and the weekly PP plus the 55- and 200-hour SMAs, the pair is expected to continue to move to the bottom towards the bottom boundary of an alleged three-week long ascending channel that is located a little bit above the updated weekly PP at 1.1722. The general strengthening of the Greenback is also supported by the average market sentiment, which is 59% bearish. As there are no data releases planned for today, the pair should not make any unexpected and sharp moves.
Hourly Chart
On daily chart the pair is actively slipping towards support set up by the bottom trend-line of a junior ascending channel. If strength of the senior descending channel prevails, the pair will make a breakout to the bottom. In addition to that, a great impact will bear an upcoming ECB meeting, which might make a decision or certain comments that will lead to depreciation of the Euro.
Daily Chart
Traders remain bearish
In result of the previous trading session the bearish market sentiment remained unchanged, as 59% 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 63% bearish and the Dollar is 55% bullish.
Traders of OANDA remain bearish, as 63% (-1%) of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 59% (+0%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility