- SWFX market sentiment is 64% bullish (-1%)
- 58% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: US President Trump to speak
A breakout of the 55- and 100-hour SMAs is likely to be followed by a surge up to 1.20.
The Greenback weakened against the Eurozone's single currency, following US Non-Farm Employment Change data release on Friday. The EUR/USD currency pair gained 23 pips, or 0.19%, to continue fluctuating in the 1.1971 area.
The Bureau of Labor Statistics released three data simultaneously from which two of them: Non-Farm Employment Change data and Average Hourly Earnings data came out lower-than-expected of 164K and 0.1% respectively. However, Unemployment Rate data came out better-than-expected of 3.9% instead of the 4.0% forecast, it was not enough to stop the currency to go upwards.
Two speeches today
The main fundamental event today is a speech by the US President Donald Trump who is to announce his decision on the Iran nuclear deal at 1800GMT.
EUR/USD bounces off 1.19
As apparent on the chart, this pattern has altered the rate's steep fall during the previous two weeks. This might point to a possible medium-term recovery starting later this week. In order to edge higher today, the Euro has still to overcome the aforementioned SMAs near 1.96.
Given that the US President Trump are to speak today, the rate might push as high as the 1.2000/30 area, while a breakout from the weekly S1 should result in a test of 1.18.
Hourly Chart
The common European currency continues to fall against the US Dollar for the third consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
It was initially though that a reversal might occur near the 1.22 mark. However, the decline of the Euro has continued as low as the 1.19 level. The nearest support is set by the weekly S2 at 1.1825; thus, the pair might still edge lower for some time until a bullish recovery occurs during the second part of this week.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 64% of open positions being long (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 51% bullish and the US Dollar is 61% bearish.
The market sentiment of OANDA has become slightly bullish, as 51% of its traders are holding long positions. Meanwhile, Saxo Bank clients remain bearish with 52% of open positions being short (-1%).
Spreads (avg, pip) / Trading volume / Volatility