- SWFX market sentiment is 62% bearish (-1%)
- 51% of pending orders in 100-pip range are to SELL the Euro
- Daily high at 1.2420
- Upcoming events: German Flash Manufacturing PMI, German Flash Services PMI, Eurozone's Flash Manufacturing PMI, Eurozone's Flash Services PMI, US Existing Home Sales, FOMC Meeting Minutes
The Euro weakened against the Greenback despite the data showing an unexpected uptick in the German ZEW economic sentiment. The EUR/USD exchange rate dropped four base points to 1.2339.
In February, Germany's investors continued to show strong confidence in the current economic situation even despite the ZEW indicator recording a decrease of 2.6 points from the prior month. Commenting on the matter, ZEW President Professor Achim Wambach said that the German economy continued to perform on an optimistic note in early 2018, adding positive results come from solid global economic growth and private consumption and that Europe's largest economy is expected to continue its growth trajectory in the next six months.
FOMC Meeting Minutes
During the morning session, Germany and the Euro zone are to release their Flash Manufacturing PMIs and Flash Services PMIs at 0830GMT and 0900GMT, respectively. In terms of the US, the National Association of Realtors is to publish data on existing home sales during January at 1500GMT.
Meanwhile, the most noteworthy event in this session is the FOMC Meeting Minutes to be released at 1900GMT.
EUR/USD faces senior channel
Despite flashing bullish signals on Tuesday, the bearish momentum took over the market during the first part of the day, as the Euro managed to gather enough momentum to breach the 200-hour SMA and the 23.6% Fibo retracement. A further decline, however, did not follow, as the bottom boundary of a four-month channel circa 1.2320 restricted the pair from moving below this level.It is likely that the pair tries to re-gain some of the lost positions during the following hours, but with limited success due to the combined resistance of the 200– and 55-hour SMAs being located near the 1.2370 mark.
Meanwhile, some volatility is likely to be introduced in the market later in the evening when the FOMC publishes its meeting minutes at 1900GMT.
Hourly Chart
It seems that the Euro might finally be ready to abandon its high position against the Greenback and move towards the bottom boundary of the prevailing 1,5-year channel, the 55-day SMA and the 50.0% Fibo retracement circa 1.22 during the following weeks.
Daily Chart
Traders are bearish
The number of short positions of the EUR/USD exchange rate is 62% in this session (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 67% bearish and the US Dollar is 59% bullish.
OANDA traders remain bearish in this session, as 59% of open positions, compared to 60% on the previous session. The bearish sentiment of Saxo Bank clients stands at 59% short positions.
Spreads (avg, pip) / Trading volume / Volatility