- SWFX market sentiment is 60% bearish
- 56% of pending orders in 100-pip range are set to SELL
- Notable support located at 1.1992
- Upcoming Events: FOMC Member Bostic and Williams Speaks
The trading week the currency rate started with a six-month downfall. As the pair has reached support formed by the weekly S1 and the bottom edge of an ascending channel, a rebound is expected to happen.
The US employment growth weakened significantly in December due to a decrease in retail jobs, while a surge in monthly pay gains indicated the labour market strength, which could enable the Federal Reserve to hike interest rates in Spring. The Labour Department stated that the non-farm payrolls increased 148K in the reported month, following an upwardly revised 252K in November. Job growth is anticipated to moderate as the labour market remains close to full employment, though with some chances to get a boost from $1.5T tax cuts package.
Empty day
In essence, there are no fundamental events planned for today that could cause notable volatility in the markets.
EUR/USD slides towards 1.20
New trading week the common European currency started with depreciation against the American Dollar. The downward movement was partially driven by a one week-long inverse head and shoulders pattern and partially by a recent bounce off from the two-year high located at the 1.2093 level. However, today the plunge most probably will be stopped near the bottom trend-line of a medium scale ascending channel, which is additionally backed up by the updated weekly S1 at 1.1992. If a rebound occurs, the pair will resume the surge trying to hit combined resistance level formed by the weekly PP at 1.2040 and the 55- and 100-hour SMA.Hourly Chart
On daily chart the currency pair is continuing to fluctuate near combined resistance level formed by upper trend-line of a medium scale ascending channel and twe two-year maximum at 1.2092. For this reason, a full-fledged rebound with the subseuqent retreat to the monthly PP at 1,1917 is expected to happen.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has increased, as 61% of open positions are short.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 65% bearish and the Dollar is 58% bullish.
Traders of OANDA remain bearish, as 68% (-2%) of open positions are short. SAXO Bank clients are likewise bearish on the pair with 63% (-2%) short positions.
Spreads (avg, pip) / Trading volume / Volatility