- SWFX market sentiment is 51% bullish
- Trader pending orders are 62% to sell
- Pair opened Friday's session at 1.0673
- Upcoming Events: EU Current Account; US CB Leading Index
US building permits advanced more than expected whereas homebuilding activity weakened in January, official figures revealed on Thursday. The Commerce Department reported building permits rose 4.6% to a seasonally adjusted annual pace of 1.29 million in January, following the previous month's upwardly revised 1.23 million units and surpassing analysts' expectations for a 1.23 million unit rate. The increase caught markets by surprise, as the figure reached the highest level since November 2015, suggesting solid growth in starts in the middle of 2017.
Meanwhile, housing starts declined 2.6% to an annualized rate of 1.25 million units in the same month, following December's upwardly revised reading of 1.28 million, whereas economists expected them to increase to a 1.23. Analysts suggest that the housing market recovery is likely to be sustained by strong labor market, which supported household formation. Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 43.3 points in February, the highest level in 33 years, driven by a jump in new orders, which climbed to 38.0 from 26.00. Data also showed the Employment Index fell to 11.1 from 12.8, while the Business Outlook Index for the next six months slid to 53.5 points.
Upcoming events: Minor data releases
There are two minor data releases scheduled for Friday's trading session. In the European Union the Current Account of the union will be published at 9:00 GMT. In the second half of the day's trading session, there will be one minor data release in the US, as the US CB Leading Index is set to be released at 15:00 GMT.
EUR/USD consolidates on Friday
Daily Chart: After unexpectedly jumping during the second half of Thursday's trading session, the common European currency consolidated its position against the US Dollar on Friday morning. The future direction of the currency pair is still unclear. However, there are two possible scenarios for the future. First of all, the rate might break the weekly PP at 1.0680 and surge as far as the 1.0733 level, where the 100-day SMA is located at. On the other hand, the rate might retreat to the monthly PP at 1.0650. To do that, the pair would need to pass the support provided by the 20-day SMA at 1.0663.Daily chart
Hourly chart: The hourly chart reveals that the currency exchange rate is clearly steering away from the weekly PP and heading for the monthly PP. In addition it reveals that if the pivot point is passed, then the way to the weekly S1 will not be clear, as the 55, 100 and 200-hour SMAs will hinder the appreciation of the US Dollar against the Euro.
Hourly chart
SWFX traders become bullish
SWFX traders are once more almost neutral, as 51% of trader open positions are long on Friday. Meanwhile, 62% of trader set up orders are to sell the Euro.
OANDA traders are also neutral bullish on the pair, as 52.08% of trader open positions are long at the marketplace. In the meantime, SAXO bank clients continue to increase their bearish positions, as 58.24% of the bank's clients are shorting the pair, compared to 53.11% previously.