- SWFX market sentiment is 58% bullish
- Pending orders in 100-pip range are set to sell in 51% of all cases
- US CPI data sets at 12:30 GMT
The resistance provided by various resistance levels on the daily and hourly charts has proven itself strong enough to push the EUR/USD currency exchange rate lower. Moreover, the latest decline has left the rate with no support as low as the 1.16 mark.
The European single currency weakened against the Greenback, following the US ISM Non-Manufacturing PMI data release on Thursday at 14:00 GMT. The EUR/USD currency pair lost eight pips in 5 minute range candle, or 0.07%, to continue fluctuating in the 1.1694 area.
The Institute for Supply Management released the monthly US Non-Manufacturing Purchasing Managers' Index data that came out better-than-expected of 59.1, compare to forecasted 58.3.
The news have created a flat down movement of the EUR/USD currency pair, since the data come out better-than-expected. The slight impact shows the absences of the big players in the markets thereat.
US CPI data sets
On Thursday the main event for the US data releases this week will take place. Namely, join for the webinar at 12:20 GMT to see the coverage of the US CPI and Core CPI, which will be out at 12:30 GMT.
EUR/USD is expected to decline
It was discovered that the currency pair is trading in massive scale descending pattern, in which there exists a long term ascending channel. In the medium pattern a descent is taking place in a channel down pattern.
Meanwhile, note that recently the pair bounced into a strong resistance cluster, and it has almost no support down to the 1.1640 mark.
Hourly Chart
There is additional information to be derived from the daily chart of the EUR/USD currency exchange rate. Namely, the 55-day simple moving average provided resistance to the currency exchange rate during the first half of this week.
If that level gets passed, the 1.18 mark, which was the set Dukascopy Anlaytics target for weeks, will be reached.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 58% 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 52% bullish and the US Dollar is 59% bearish.
Traders remain firmly long, as they expect the Euro to gain even more ground against the US Dollar in the near future.
OANDA traders are no longer bullish, as their open positions were balanced on Thursday. Meanwhile, Saxo Bank traders remained bullish, as 51% of open positions were long by the middle of the day's trading.
Spreads (avg, pip) / Trading volume / Volatility