- SWFX market sentiment is 59% bearish
- 50.72% of pending orders in 100-pip range are set to sell
- Pair opened Wednesday's session at 1.1754
- Upcoming Events: US Preliminary Nonfarm Productivity; US Preliminary Unit Labor Costs
The EUR/USD currency pair remained flat on Wednesday morning. However, this move came after the pair had dropped due to fundamental US news, which were published during the second half of Tuesday.
The Labour Department released its Job Openings and Labour Turnover Survey, or JOLTS, which revealed that the number of job openings jumped 461K to a seasonally adjusted 6.16M, following the preceding month's upwardly revised figure of 5.70M. The better-than-expected data bolstered optimism over the future of the labour market, as the gap between hiring and job openings indicated qualified workers' shortages, which would sustain upward pressure on pay growth.
Minor US data sets
On Wednesday the financial instruments, which involve the US Dollar, might be influenced by two data sets. It will be the release of the Preliminary Nonfarm productivity and Preliminary Unit Labour Costs data sets. The data sets will be released simultaneously at 12:30 GMT. However, the data release will not be covered by the Dukascopy Research Team.
EUR/USD move into critical zone
The common European currency depreciated against the US Dollar earlier than expected. The currency exchange rate was about to approach the resistance of the 100-hour SMA just above the 1.1820 mark when it suddenly dropped. The reason for the sudden plummeting of the currency exchange rate was the release of the almost never financial markets impacting JOLTS Job Openings. The published data was so much higher than the initially forecasted that the US Dollar skyrocketed all across the boards. For the EUR/USD pair that resulted in the rate reaching the zone near the lower trend line of the long term ascending channel pattern near the 1.1750 mark. It still has to be seen, whether a surge reoccurs or a decline of the pair continues. Clues for that might be on the longer term charts.
Hourly Chart
The daily chart reveals the future direction of the currency rate. A medium term decline is in the process. Actually, one should start looking for the borders of a new medium term descending channel. However, one hypothesis can be already made. The currency pair is about to head to the lower trend line of a large scale, long term ascending channel pattern.
Daily Chart
SWFX traders have changed their opinion
The SWFX trader open positions are no longer 60% short, as they were for seven consecutive sessions. Instead traders are 59% short. Moreover, the trader set up orders have changed, as 56.69% of commands are to buy the Euro. On Tuesday 57.10% of trader set up pending commands were to sell the Euro.
Traders of OANDA remain largely bearish, as 68.80% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 58.54% of traders are short, compared to 60.40% previously.
Spreads (avg, pip) / Trading volume / Volatility