- SWFX market sentiment is 58% bearish
- 57% of pending orders in 100-pip range are set to BUY
- 54% of traders are bullish on the Dollar
- Upcoming Events: US Unemployment Claims
An unexpected fundamental release in the US has caused a fall of the US Dollar all across the trading boards, which involve the US Dollar. During that move the EUR/USD currency rate has passed a notable resistance level, which opened the way for even more gains. Namely, on Thursday morning the pair was at the 1.1940 mark.
The US Dollar was slightly higher against the European single currency, following pending sales data on Wednesday. The EUR/USD currency pair fell just 5 base points or 0.04% to reveal delayed, but short-term drop entering the 1.1890 area.
Contracts to purchase previously owned houses increased in November, supported by the job growth in the strengthening US economy. The National Association of Realtors states that pending home sales indicator rose to 109.5 points to show a 0.2% gain for the month. The real estate market restored some momentum after inactivity for much of 2017 due shortage of inventory, which caused an increase in prices, and a lack of both land and labour.
Weekly Unemployment Claims
There is one release, which will occur on Thursday. The weekly Unemployment Claims will be released at 13:30 GMT. However, this data release does not cause a large reaction during volatile trading times. Most likely now, during the winter holiday trading days, there won't be anything notable occurring during the release. Due to that reason it will not be covered live by the Dukascopy team.
EUR/USD breaks dominant resistance
The common European currency has gained ground against the US Dollar. The currency exchange rate on Thursday morning was approaching the 1.1940 mark. However, it has to be noted that the reason for the surge was US Dollar's weakness not the strength of the Euro, as it can be seen that the Buck has given ground on all charts.In regards to the future of the EUR/USD pair, it can be expected that the surge will continue until it reaches the upper trend line of the pattern, which forced the breaking of the dominant resistance. The trend line at current angle would be reached near the 1.1960 level.
Hourly Chart
By watching the daily chart one can notice that this breakout was expected. Although, not so soon, as the pair still could have fluctuated between the various support levels and the previously mentioned resistance line.
If this breaking of the resistance is assumed as a break out from a triangle pattern, then the surge should continue. However, due to the reduced liquidity of the holiday season, the surge of the Euro against the US Dollar should occur a lot slower than during any other breakout.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has slightly increased, as 58% 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% (+3%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 62% (+1%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility