- SWFX market sentiment is 57% bearish
- 58% of pending orders in 100-pip range are set to SELL
- 52% of traders are bullish on the Dollar
- Upcoming Events: US Existing Home Sales, Fed Chair Yellen Speaks
The currency exchange rate expectedly slipped to the bottom boundary of a dominant ascending channel. Today the pair is likely to make an attempt to break to the top. However, a combined resistance level formed by various Mas and pivot points is expected to neutralize the surge.
The EUR/USD currency pair failed to recover after falling sharply on Angela Merkel's unsuccessful attempt to form three-way coalition. The Euro gained against the Greenback 15 base points to the 1.1751 mark to reveal temporary increase, but continue trading in the 1.1740 area.
Destatis reported that German producer inflation eased slightly to mark a 2.7% yearly increase in October, while monthly growth pace remained at 0.3% in the same period. The most of contribution came from the Intermediate Goods Index climbing 4.1% year-over-year for the month. In the separate report, Deutsche Bundesbank noted that the country's economy is set to remain on a solid growth path entering in the Q4, buoyed by the surge in industrial activity.
Fed Chair Yellen Speaks
There only two events scheduled for today. The first will happen at 15:00 GMT when the National Association of Realtors will publish an update on the number of Existing Home Sales. The second will begin at 23:00 GMT when the Fed Chair Janet Yellen will participate in a panel discussion titled "In Conversation with Mervyn King" at the New York University Stern School of Business.
EUR/USD prepares to test combined resistance
The common European currency continued to lose value against the Dollar in a junior descending channel, as expected. In first hours of this trading session it made a rebound from the bottom trend-line of a dominant ascending channel, which was additionally supported by the rising 200-hour SMA. From larger pattern's perspective the currency pair should succeed to break through combined resistance area formed by the 55- and 100-hour SMAs, the weekly PP, the 38.2 Fibonacci retracement level around the 1.1765 mark. However, the rate might actually end the day outside the senior channel due to additional pressure exercised by the 100-day SMA. In addition to that, the aggregate market sentiment remains 62% bearish and majority of traders continue keeping negative outlook on the Euro.
Hourly Chart
On daily chart the currency pair is trading below combined resistance level set up by the 38.2% Fibonacci retracement level, the weekly PP and the 100-day SMA. And this pressure is likely to lead to breakout from the currently active ascending channel. Such scenario seems even more likely, as the southern direction does not contain any barriers up until the monthly PP at 1.1700.
Daily Chart
Traders stay bearish
In result of the previous trading session the bearish market sentiment remained unchanged, as 57% 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 52% bullish.
Traders of OANDA remain bearish, as 59% (-4%) of open positions are short. Meanwhile, SAXO are neutrally bearish on this currency pair with 59% (+1%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility