- SWFX market sentiment is 62% bullish
- 61% of pending orders in 100-pip range are to SELL the Euro
- No significant fundamentals in this session
EUR/USD finds support at the 55-hour SMA early on Monday.
The Markit released Manufacturing Purchasing Managers Index data that came out better-than-expected of 54.4, compared to the 53.9 in the previous period.
"At first glance, the mild acceleration in the rate of output growth and rise in the headline PMI would appear positive," Rob Dobson, a Markit director, said. "However, scratch beneath the surface and the rebound in the PMI from April's 17-month low is far from convincing."
Quiet day
This trading session marks no significant data releases for the EUR/USD currency pair.
EUR/USD ready to break out
The common European currency remained stable against the US Dollar for the third consecutive session on Friday, as the pair continued to fluctuate around the 55– and 200-hour SMAs. This has put the Euro in between the upper boundary of an eight-week channel and the weekly resistance/support level of 1.1650.The pair trading near the upper channel line for two sessions suggests that it might be ready to break out to the upside. This bullish scenario is likewise strengthened by the fact that the rate surpassed the 55-period SMA (4h) early today.
The most probable upside target in this session is the weekly R1 and the 23.60% Fibo retracement at 1.1760, while a fall should not exceed the 1.1680 area.
Hourly Chart
The common European currency has fallen considerably against the US Dollar since mid-April which marks a 5.95% plunge within a couple of weeks.
The pair started to recover during the second part of last week after hitting a six-month low of 1.1550. It is expected that this up-move continues in the medium term. The nearest support level is the weekly R1, the monthly PP and the 23.60% Fibonacci retracement. By and large, the Euro should continue its appreciation until the 200-day SMA near 1.2050 is reached.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 62% of open positions being long.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 56% bullish and the US Dollar is 60% bearish.
OANDA traders are bullish on the Euro with 56% of open positions being long today (+1%). The market sentiment of Saxo bank stands at equilibrium, compared to 52% of its traders holding short positions on Friday.
Spreads (avg, pip) / Trading volume / Volatility