- SWFX market sentiment is 60% bullish (-2%)
- 60% of pending orders in 100-pip range are to SELL the Euro
- No significant data releases today
The Euro still shows slight upside potential in this session.
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."
Calm day
This trading session does not include any important data releases. The US Department of Labour is set to release the weekly Unemployment Claims at 1230GMT.
EUR/USD remains bullish
The Euro was boosted by fundamentals on Wednesday. It surged past the monthly PP, the weekly R1 and the 23.60% Fibonacci retracement following a comment by the ECB Chief Economist Peter Praet about inflation approaching the bank's set target rate. As a result, EUR/USD was able to reach the psychological 1.18 mark by this morning.Some upside potential is still apparent in the market. Two possible target points are the weekly R2 and the 200-period (4H) SMA at 1.1850 and 1.1900, respectively. A test of the latter would provide another confirmation of a short-term ascending channel.
On the other hand, the Euro might ease its upward pressure for a few hours. However, the 55– and 100-hour SMAs should provide support, thus preserving the general bullish tendency this week.
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 60% of open positions being long (-2%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 55% bullish and the US Dollar is 60% bearish.
OANDA traders are bullish on the Euro with 58% of open positions being long today (-1%). Meanwhile, the market sentiment of Saxo bank is 54% bearish (+3%).
Spreads (avg, pip) / Trading volume / Volatility