- SWFX market sentiment is 62% bearish
- 57% of pending orders in 100-pip range are to SELL the Euro
- Strong resistance near 1.2680
- No fundamentals in this session
The EUR/USD currency pair was not exposed strongly to the influence of fundamentals on Monday. The Greenback weakened against the European single currency 7 base points to near the 1.2400 level.
Economic activity in the US services sector was the strongest in more than 12 years, supported by rising new orders, suggesting that the economy sustained the strong momentum in the beginning of the year. The ISM survey showed that its non-manufacturing PMI jumped to 59.9 in January, from 55.9 in the prior month. The US economy kept expanding even before the stimulus from a $1.5T tax cut program has begun to filter through. However, that is likely to cause some concerns that the country's economy could overheat.
No fundamentals
No significant fundamentals are scheduled for today. Traders should turn their attention to the equities market.
EUR/USD likely to appreciate today
The common European currency remained stable against the Greenback on Friday, as it was confined within the bounds of the 32.20% Fibo retracement and the monthly PP at 1.2225 and 1.2289, respectively.The pair breaching the 55-hour SMA near 1.2250 could point to a soon period of appreciation. This is likewise supported by other indications, such as the slight two-day consolidation after a week of decline, as well as the Euro's reversal from the 38.20% Fibo and the bottom boundary of a three-month channel up.
Thus, it could be assumed that the rate will try to push up to the 23.60% retracement line at 1.2345, at least. This scenario, however, could be hindered by the combined resistance of the weekly and monthly PPs and the 100-hour SMA in the 1.2290/1.2312 area.
Hourly Chart
The Euro has been confined in a three-month ascending channel against the US Dollar. The pair's current position within this pattern suggests that it might either consolidate or edge slightly within this week until the bottom boundary of this medium-term pattern and the 50.00% Fibo retracement are reached circa 1.22.
Daily Chart
Bears become stronger
The bearish market sentiment has increased by one percentage point to 63% short positions in this session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 66% bearish and the US Dollar is 60% bullish.
OANDA traders are increasingly bearish in this session, as 59% of open positions are short (+3%). The bearish sentiment of Saxo Bank clients has remained at 59% short positions for the second consecutive session.
Spreads (avg, pip) / Trading volume / Volatility