- SWFX market sentiment is 64% bullish today
- Pending orders in the 100-pip range are 51% to buy
- Weekly Economic Calendar analysis at 12:00 GMT
On Monday morning the EUR/USD bounced off the support line of a large scale channel down pattern. In general, it is expected that the currency exchange rate will trade sideways in the near future.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate data release on Thursday at 11:45 GMT. The EUR/USD exchange currency rate lost 8 pips or 0.07% during a minute, right after the release. The European Single Currency continued trading at the 1.141.00 area.
The European Central Bank released EU Main Refinancing Rate data that came out in line with expectations of 0.00 %.
The European Central Bank noted: "The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019 ".
No data on Monday
On Monday, there are no data releases scheduled to occur that might impact the financial markets.
Meanwhile, the week's calendar will be reviewed during the weekly Poking the Economic Calendar webinar at 12:00 GMT.
EUR/USD short term review
In regards to the near-term future, most likely, the currency pair will trade sideways above the monthly S2 at 1.1359 due to a lack of any significant fundamental news for the currency exchange pair during the trading day.However, the resistance of the 55 and 100-hour SMAs could push the rate to pass through the support of the monthly S2 to trade at 1.1300.
Hourly Chart
The daily chart has been updated to show the previously broken ascending pattern and the two active channel down patterns.
The pair recently bounced off the support of a dominant pattern. Due to that reason it can be expected that the smaller one of the two channel down patterns might be broken in the near future.
Daily chart
On Monday, 63% of all traders were long on the EUR/USD. The sentiment has been mostly long for almost a week.
Meanwhile, traders had their pending orders set up mostly to sell the EUR/USD, as 59% of all trader set up orders were set to sell the pair.
Traders want to take advantage of a rebound upwards.
However, the retail sector will not provide a push upwards or downwards, as their pending orders are set to sell. Most likely the orders are take profits and stop losses for the long positions.