- SWFX market sentiment is 57% bearish
- 56% of pending orders in 100-pip range are set to BUY
- 53% of traders are bullish on the Dollar
- Upcoming Events: US Core Durable Goods
On Friday morning it seemed that the Euro had stopped its advance against the US Dollar. The reason for the assumption was the fact that a resistance line was clearly spotted. Moreover, a slightly confirmed lower trend line could be marked, changing the short term forecast for the EUR/USD currency exchange rate.
The Greenback depreciated against the European single currency on the disappointing US GDP data. The EUR/USD exchange rate rose 11 base points to the 1.1866 mark to reveal temporary consolidation, but fell, as Congress managed to avoid the US Government shutdown on Friday.
The US economy expanded at its strongest pace in two years in the Q3, fuelled by solid business spending.The Commerce Department stated that the country's gross domestic product rose at a 3.2% yearly rate in the Q3, missing expectations for a 3.3% growth. Moreover, the US Congress approved tax cuts are set to encourage economic growth, though the risk of overheating is likely to occur with fiscal stimulus coming simultaneously with reaching the level of full employment.
Last release before Christmas
One last release to watch before the financial markets begin their holiday weekend is the release of the US Core Durable Goods Orders. The release will occur at 13:30 GMT. Dukascopy research team is set to cover it live on our webinar platform. Remember to tune in as it begins at 13:20 GMT. There will be a notification on our trading platforms, which you will be able to click and join.
EUR/USD begins to decline
On Friday morning the common European currency had continued the decline against the US Dollar, which started during the late hours of Thursday's trading session.
It began due to the fact that the pair bounced off resistance near the 61.80% Fibonacci retracement level, which is located near the 1.1890 mark. The high levels of the recent attempts to surge are used to chart a speculated channel down pattern.
The pattern reveals that the pair might fall down to the 1.18 mark by New Year's Eve.
Hourly Chart
The previous daily chart's analysis was right. The pair hit the upper trend line of a dominant descending pattern, which has now been clearly mapped on the chart.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has increased, 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 62% bearish and the Dollar is 53% bullish.
Traders of OANDA remain bearish, as 62% (+2%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 59% (-2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility