- Traders are bearish with 55% short positions (-1%)
- 59% of pending orders in 100-pip range are to SELL the Euro
- Significant resistance cluster near 1.2350
- G20 meetings are held for two days
The Greenback weakened against the European single currency, following the release of the US building permits report. The EUR/USD currency pair gained only three base points, or 0.02%, reaching the 1.2328 level.
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month. The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
No data releases
The main focus in this session is G20 meetings to be held during the following two days. No other fundamental events of significant or intermediate importance are scheduled for today.EUR/USD tests senior channel
The Euro was appreciating steadily against the Greenback on Friday morning. The pair, however, was unable to reach the combined resistance of the 55-, 100– and 200-hour SMAs, as it started falling substantially mid-session. The rate plunged 70 pips within three hours prior to consolidating around 1.2280.As apparent on the chart, the Euro was testing the bottom boundary of a six-month channel up and the weekly S1 on Monday morning. The pair might still edge slightly lower down to the 38.20% Fibonacci line at 1.2240 prior to bouncing off this long-term pattern.
It is expected that the pair hinders near 1.23 for a few hours prior to targeting the 1.2340 area. Even though no data releases are scheduled for today, political events in the G20 summit might cause some turbulence during the following two days.
Hourly Chart
EUR/USD breached the 55-day SMA during the early hours of Monday, thus adding some ground to the overall bearish sentiment that is dominating the given pair.
It is expected that the pair continues its movement towards the senior channel located near 1.22 this week. The 50.00% Fibonacci retracement is likewise located nearby. This bearish scenario is supported by technical indicators on the daily time-frame.
However, the 55-day SMA might provide some support for a few sessions, thus leaving the rate stable during this time.
Daily Chart
Traders are bearish
The number of short positions of EUR/USD is 55% in this session (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 61% bearish and the US Dollar is 55% bullish.
The bearish sentiment of OANDA traders is standing at 58% short positions today (-1%). Saxo Bank clients have likewise decreased their short positions to 57% (-1%).
Spreads (avg, pip) / Trading volume / Volatility