- SWFX market sentiment is 62% bearish
- 54% of pending orders in the 100-pip range are to BUY the US Dollar
- Nearest resistance still located near 112.70
- Upcoming events: US Building Permits, Current Account and Housing Starts
In line with expectations, the currency rate spent previous trading day moving horizontally between the 112.80 and 112.45 levels. An upcoming vote on tax reform should strengthen the buck, even though the surge most probably will be halted by various technical indicators located above the current market price.
Industrial output in the US rose less than anticipated in November, as a decline in utilities production offset a post-hurricane jump in the gas and oil industries, the Federal Reserve stated on Friday. Overall industrial production rose 0.2%, following an upwardly-revised gain of 1.2% in the prior month and missing the expectations for a 0.3% surge. Meanwhile, the US manufacturing sector, which draws up nearly 12% of the country's economy, also grew 0.2% in the reported month.
Housing - Tuesday
Although the US Census Bureau will publish some information about development on the American housing market, these data is not expected to cause some notable price movements.
USD/JPY fluctuates between 55- and 100-hour SMAs
In line with expectations, the currency exchange rate did not make any significant moves yesterday. To put it differently, despite the pressure from the weekly and monthly PP as well as the 100-hour SMA, a combination of the 55-hour SMA and the 50% Fibonacci retracement level managed to constrain the downfall. As for today, the vote in Congress should lead to appreciation of the buck. In support of this scenario, 54% of pending orders in 100-pip range are set to buy. However, a concentration of the above technical indicators plus the 200-hour SMA most probably will either neutralize the surge or even cause a rebound and retreat back to support zone near the 112.10 level.Hourly chart
On daily chart the pair has stuck near monthly PP, which is covered by the 55-day SMA and the 50% retracement level from both sides. Because of this double pressure it might spend some time moving horizontally.
Daily chart
The SWFX sentiment has increased, as 62% of open positions are short now. Meanwhile, 52% of pending orders are to buy the US Dollar (-1%).
OANDA traders are bullish on the pair, with 52% of open positions being long (-3%). Saxo Bank clients are holding 54% long positions (+4%).