- SWFX market sentiment is at equilibrium
- 58% of pending orders in 100-pip range are to SELL the Euro
- Strong resistance cluster at 1.2370
- Upcoming fundamentals: German Buba president Weidmann and FOMC Member Williams to speak, IMF Meetings, Euro zone's consumer confidence
The Euro breaching the 200-hour SMA could point to some bearish sentiment in this session.
The Greenback strengthened against the Eurozone's single currency, following the US Building Permits data report on Tuesday. The EUR/USD currency pair lost only 3 pips, or 0.03%.
The Census Bureau released the Building Permits data that came out slightly better-than-expected and instead of the forecast of 1.33M, the residential building permits grew by 1.35M in the period of March.
Building Permits rose by 2.5% annually, reaching the 1.354M growth pace, thus signaling how much of a construction is in the process. Moreover, single-family house building has retained close to the utmost levels ever since the recession began.
Calm session
The President of Deutsche Bundesbank Jens Weidmann is set to participate in a press conference at the International Monetary Fund's Spring Meeting at 1130GMT. Meanwhile, the Euro zone's Consumer Confidence for April will be published at 1400GMT.
The International Monetary Fund is to hold meetings during the following three days.
EUR/USD bulls restricted by resistance cluster
The common European currency was trading along the 55– and 100-hour SMAs and a junior channel on Thursday morning. This movement sideways shifted south mid-session when a strong hourly surge pushed the rate below all three SMAs and the 23.60% Fibonacci retracement. This bearish momentum subsequently allayed in response to the weekly PP and another channel line being located nearby.Technical indicators are gradually moving towards the oversold territory. Given that there is still some slight downside potential and the Euro is facing a rather strong resistance cluster, traders might be reluctant to push above the 1.2360 mark.
Therefore, the rate could either trade sideways in the 1.2360/00 range or surpass the latter and began falling down to 1.2280.
Hourly Chart
The Euro has remained near the 55-day SMA and the monthly PP this week, thus returning to the senior channel. Its inability to edge higher during the past two weeks continues to point to further downside potential. The nearest support is provided by the 100-day SMA, the monthly S1 and the 50.0% Fibonacci retracement.
Daily Chart
Bearish sentiment allays
The SWFX market sentiment for EUR/USD stands at equilibrium today, compared to 52% short position in the previous session.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 57% bearish and the US Dollar is 54% bullish.
The bearish sentiment of OANDA traders has weakened to 59%. Saxo Bank clients share the same sentiment with 62% of open positions being short (-2%).
Spreads (avg, pip) / Trading volume / Volatility