- SWFX market sentiment is 54% bullish today
- Pending orders in the 100-pip range are set to sell in 59% of cases
- UK and Canadian data on Friday
On Friday morning the EUR/USD was aiming to reach the 1.1550 level. Namely, it had passed a support level at 1.1645 and was heading lower.
The European Single Currency appreciated against the US Dollar, following the US Federal Funds Rate release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate gained 22 pips or 0.19% during a minute, right after the release. In the next minutes the rate was trading at the 1.1760
The Federal Reserve released the US Federal Funds that came out in line with expectations of <2.25%.
"The committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labour market conditions and inflation near the committee's symmetric 2 per cent objective," the statement said, repeating previous language.
CAD GDP at 12:30 GMT
Macroeconomic data release traders need to take into account that there will be more releases on Friday.
At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
Both events will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is released.
EUR/USD short term review
In regards to the near future, most likely, the rate will move down towards the monthly PP at the 1.1546 mark to trade in the 1.1580 area on Friday. The simple moving averages will try to catch up the rate to resist the European Single currency.On the other hand, any fundamental news may change the trade direction of the currency pair to move it upwards to locate near the 1.1680 mark during the day.
Hourly Chart
The dominant pattern's support did not holds its ground after all, as the EUR/USD finally began the big decline, which should have occurred in the aftermath of the US Federal Funds rate hike.
In addition, note that the rate's decline most recently was stopped by the support provided by the 55-day simple moving average at 1.1620. This level needs to be passed first for the pair to continue its decline.
Daily chart
On Friday, 54% of trader open positions were bullish on the Swiss Foreign Exchange.
Meanwhile, all of the traders on SWFX have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, sell and buy orders were set to sell in 61% of all cases.
As the decline of the rate occurred, traders did not start selling the EUR/USD instead they are expecting for more confirmations to sell.