- SWFX market sentiment is 60% bullish today
- Pending orders in the 100-pip range are set to buy in 60% of cases
- No notable data releases until Wednesday
The EUR/USD is booking new low levels, as the previously holding support of the 50.00% Fibonacci retracement level was passed on Tuesday.
Last week the European Single Currency appreciated against the US Dollar, following the US Employment data sets release on Friday at 12:30 GMT. The EUR/USD exchange currency rate gained 24 pips or 0.20% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1520 area.
The Bureau of Labor Statistics released Non-Farm Employment Change data lower-than-expected of 134k compared with forecasted 185K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The Labor Department commented that the unemployment rate fell to 3.7% in September from 3.9% in August. The unemployment rate had been expected to edge down to 3.8%.
No data until Wednesday
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
EUR/USD short term review
In regards to the near-term future, the European Single Currency will stay at the 1.4600 level due to support the 50.00% Fibo which should retrace the rate to go upwards to the monthly S1 during the day. Most likely, the 55-hour and the 100-hour SMAs will stop the rate from surge to trade at previously mentioned level.On the other hand, the rate could pass the 50.00% Fibo to use it as resistance to trade closer to the weekly S1 at the 1.1450 mark.
Hourly Chart
The long term ascending pattern's support line was broken. The rate has no support on the daily chart as low as the 1.1376 levels.
The rate is expected to reach that level in the upcoming couple of trading sessions.
Daily chart
Swiss traders continued to be long on the EUR/USD on Tuesday. Namely, 61% of all open EUR/USD positions were long during the day.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, and position opening orders were set to sell in 55% of all cases.
These orders are set to push the rate lower, as the retail sector sells the EUR/USD.