- SWFX market sentiment is 61% bullish today
- 52% of pending orders in the 100-pip range are set to SELL
- First notable US data will be on Wednesday
On Tuesday, the EUR/USD surged as expected. Although, on the daily chart the currency exchange rate pierced a dominant resistance level on the hourly chart.
The European Single Currency appreciated against the US Dollar, following the ADP Non-Farm Employment Change release on Thursday at 12:15 GMT. The EUR/USD exchange currency rate gained 9 pips or 0.08% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1648 area.
The Automatic Data Processing, Inc. released US ADP Non-Farm Employment Change data lower-than-expected of 163k compared with forecasted 195K.
The Dukascopy analysts noticed that the ADP Non-Farm Employment Change has been losing its impact on the market due to a small pip range during previous data releases.
No US data until Wednesday
During the first half of the week there will be no notable data releases occurring in the United States or Europe that might impact the EUR/USD.
On Wednesday, the US PPI data release will occur at 12:30 GMT. The event will be covered by Dukascopy Analytics on the bank's webinar platform at 12:20 GMT.
EUR/USD short term review
The European Single Currency appreciated 0.59% since Monday's trading session. The currency rate passed the simple moving averages and was located at the 1.1620 mark during Tuesday morning hours.Most likely, the rate should be stopped by the weekly R1 at the 1.1632 mark and the upper boundary of the descending medium channel to fit back into the pattern during Tuesday's session.
In another scenario, the European Single Currency might take the support of the simple moving averages, which will push the rate to surge upwards to break the resistance levels of the weekly R1 and upper boundary of the medium pattern.
Hourly Chart
On Tuesday, the EUR/USD currency rate revealed another version of the daily chart of the currency pair. If the pattern manages to force the pair into a rebound against its lower trend line, it will be used as a guide for the pairs expected surge up to the 1.1900 mark.
Daily chart
The short term oriented Forex traders of the Swiss Foreign exchange have increased their long position proportion, as 62% of Dukascopy traders were long on Tuesday. Previously, they were 59% long.
Meanwhile, all of the traders on SWFX have prepared pending trade orders, which might be executed in certain situations. Of all the take profits, stop losses, sell and buy orders 56% are set to sell the EUR/USD.
This means that, if the rate increases volatility, the retail sector will push the rate down, as it dumps its long positions.
Other, more long term oriented FX brokerages also publish their sentiment data. They can help retail traders with understanding the market expectations for the next couple of months. For example, OANDA brokerage traders are 54% short on the pair, and Saxo Bank traders are 52% short.
In general, it can be noticed that short term traders are mostly long. Meanwhile, longer term oriented traders have already opened enough short positions to dominate their brokerages.
Spreads (avg, pip) / Trading volume / Volatility