- SWFX market sentiment is 57% bearish
- 51.69% of pending orders in 100-pip range are set to SELL
- Pair opened Tuesday's session at 1.1782
- Upcoming Events: US Retail Sales; US Empire State Manufacturing Index; US Import Prices
The common European currency continues to decline against the US Dollar in the recently adjusted channel down pattern. Judging by the situation on Tuesday morning, a forecast was made. It is expected that the currency rate will fall below the 1.17 mark in the upcoming 24 hours.
Weaker-than-expected preliminary report of the German GDP growth in the Q2 managed to strengthen bearish sentiment in the EUR/USD pair. The Euro rose initially against the Greenback, but continued to trade below the 1.1763 mark. Though, during the Tuesday's session, the further direction would be determined by the US economic reports.
Destatis revealed that its preliminary estimate for the Germany's economic expansion rose 0.6% in the June quarter, following an upwardly revised 0.7% gain in the Q1. The country's economic growth was driven by higher industrial production and retail sales. However, risks of deterioration in the Euro zone's largest economy could result in more cautious ECB stance towards the next policy changes.
US Retail Sales and its company
From a fundamental perspective on Tuesday the financial markets will be affected by the US data sets, which will be published at 12:30 GMT. At that time the US Retail Sales and Core Retail Sales will be in focus. In addition, the retail sales data will be released together with the Empire States Manufacturing Index and the US Import Prices. The data release is scheduled to be covered by the Dukascopy Research team on the bank's live webinar platform.
EUR/USD finds support at 1.1725 mark
As it was expected, the EUR/USD currency pair is continuing the decline. On Tuesday morning the pair suddenly reached the support of the weekly S1, which is located at the 1.1726 level.
The move was expected to occur, and it came into reality, as the 100-hour SMA was passed at the 1.1770 level. The currency pair rebounded against the mentioned weekly support level.
However, it is still to be expected that the rate will decline. The reason for that is the fact that the pair remains in a medium term descending channel pattern. Most likely in the near future the pair will go for the support of the pattern. On Tuesday the support of the channel was already located below the 1.17 mark.
Hourly Chart
The daily chart reveals an important piece of information. The 20-day SMA is supporting the weekly S1, as the SMA is located at the 1.1720 level. Moreover, the 2015 high level, which proved itself as a medium strength level of significance in the recent weeks, is located at that exact level and might strengthen the SMA.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 57% short. On Tuesday 52.49% of pending commands are to buy, compared to 50.78% of sell orders previously.
Traders of OANDA remain largely bearish, as 66.12% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 58.75% of traders are short, compared to 60.60% previously.
Spreads (avg, pip) / Trading volume / Volatility