- SWFX market sentiment is 61% bullish today
- Pending orders in the 100-pip range are set to sell in 52% of cases
- Next US data on Monday
The EUR/USD has reached the targeted level at 1.1610. Meanwhile, in the near future the rate should decline or trade sideways, as the surge has been overextended.
The European Single Currency appreciated against the US Dollar, following the US CPI data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate gained 24 pips or 0.21% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1583 area.
The Bureau of Labor Statistics released US CPI data that came out lower-than-expected of 0.1% compared with forecasted 0.2%.
"In September, the Consumer Price Index for All Urban Consumers increased 0.1 percent seasonally adjusted; rising 2.3 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy rose 0.1 percent in September (SA); up 2.2 percent over the year (NSA)" the U.S. Bureau of Labor Statistics announced on Thursday.
Week's releases are over
This week's data releases have passed. There are no important macroeconomic data releases set to occur on Friday.
However, take note that already on Monday the data releases will resume. At 12:30 GMT the US Retail Sales and Core Retail Sales will be published.
The event will be covered by Dukascopy Analytics on the bank's webinar platform. The cover will begin at 12:20 GMT.
EUR/USD short term review
In regards to the near-term future, most likely, the European Single Currency will try to break the resistance of the weekly R1 to trade near the monthly PP at the 1.1620 level during the trading session.However, the weekly R1 resistance could stop the rate from surge to change the rate's direction to move the currency pair to trade at the 1.1580 level on Friday.
Hourly Chart
It could be noticed that on the daily chart the resistance of the 55-day SMA held its ground on Thursday at 1.1592. However, on Friday it was broken.
Meanwhile, note that there is additional resistance to the currency pair at 1.1630 provided by the 100-day simple moving average.
Daily chart
Swiss traders continue to be long on the EUR/USD. 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 54% of all cases.
The sell orders are considered normal, as all of the long positions should have take profit and stop loss orders set up.