- SWFX market sentiment is 58% bearish
- 56.90% of pending orders in 100-pip range are set to SELL
- Pair opened Monday's session at 1.1828
- Upcoming Events: Empty Monday's session
During the second half of Friday's trading session the EUR/USD surprised some market participants, as the rate bounced out of the borders of the drawn descending patterns. However, the moves only pressured for an adjustment of the borders of the pattern. The patterns and situation all in all has not changed.
The USD/EUR currency pair accelerated growth significantly on Friday, as the report showed that the US consumer prices rose less than anticipated in July. The Euro gained against the Greenback 30 base points or 0.26% to continue the trading session above the 1.1798 level. The Labour Department revealed that the US Consumer Price Index surged 0.1% over the course of July, missing expectations for a 0.2% rise. Despite the muted increase in consumer prices, some economists remained convinced that the expansion was affected by transitory factors. Furthermore, the Federal Reserve kept considering the key interest rate hike by the end of this year, albeit the decision would depend on further inflation growth pace.
Quiet session
There are no data releases scheduled for the rest of the Monday's trading session. However, some might want to look at the German preliminary GDP, which will be published at 06:00 GMT on Tuesday morning.
EUR/USD patterns get adjusted
The recent surge of the Euro against the US Dollar to the 1.1850 mark has forces a review of the situation of the pair. Both, short term and medium term patterns were adjusted. After the adjustment the medium term descending channel pattern is with a lesser incline than previously thought. Meanwhile, the junior patter seems to be still holding. However, in the near future it will become obsolete. All in all, the forecast of a decline of the pair remains in force. Although, in the next 24 hours the currency pair will face the support of the 55 and 100–hour SMAs together with the weekly PP in a range from 1.1780 to 1.1760.
Hourly Chart
The daily chart, after the adjustments, shows a clear bounce off in the borders of the medium term descending channel pattern.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 58% short. On Monday 50.78% of pending commands are to sell, compared to 52.40% of buy orders previously.
Traders of OANDA remain largely bearish, as 64.85% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 60.60% of traders are short, compared to 61.41% previously.
Spreads (avg, pip) / Trading volume / Volatility