- SWFX market sentiment is 59% bearish
- 50.76% of pending orders in 100-pip range are set to BUY
- Pair opened Monday's session at 1.1951
- Upcoming Events: Quiet session
The effects of the Jackson Hole symposium have taken full effect on the EUR/USD pair. In general, a surge has occurred, which is likely going to continue. However, the situation needs to be reviewed more after a period of consolidation takes place.
The Commerce Department showed that the US Durable Goods fell 6.8% in July amid weaker demand for commercial jets, while its Core measure marked a better-than-expected gain of 0.5% in the same period. The US Durable Goods reports on early Friday caused a modest market reaction additionally muted ahead of two economic leaders' speeches.
However, while the Fed Chair Janet Yellen avoided commenting the US Central Bank's monetary policy, the Greenback weakened against the Euro by 66 pips or 0.56%. Moreover, the EUR/USD jumped again by 48 base points to consolidate near the 1.1927 level following Mr. Draghi, as the markets focused on positive sides of his speech, ignoring notice on growing threats of trade protectionism.
Quiet after the storm
After the major events of Friday, this Monday is going to be a quiet session, as there are not even minor data releases set to occur, which might impact the financial markets.
It is an excellent opportunity to review the situation on various charts in the aftermath of Jackson Hole summit or just relax and monitor long term positions. However, that actually is exactly what the markets call a period of consolidation.
EUR/USD jumps on Friday
The results of the Jackson Hole symposium can be observed on the charts on Monday. The Euro has skyrocketed against the US Dollar. Both speeches of the ECB and the FED leaders have caused a surge in the currency pair. H
However, the impact of the speech of Janet Yellen was larger than the one of Mario Draghi. Meanwhile, from a technical perspective it was a perfect break out from the triangle pattern that Dukascopy analysts were talking and writing about constantly.
The breakout has occurred to the upside. In regards to the future situation, it can be expected that the currency rate will reach for the 1.20 mark. Although, a full review is required first.
Hourly Chart
Two facts need to be mentioned in regards to the daily chart. Both of them are a consequence of the already mentioned Jackson Hole central banker's symposium.
First of all the medium term descending channel pattern was broken. The upper trend line of it was providing support on Monday together with the 20-day SAM and the weekly S1 at the 1.1790 mark.
Meanwhile, the upper Bollinger band has been even left behind. It is a clue that an upcoming period of consolidation is surely going to occur, which could already be seen by looking at the red daily candle of Monday.
Daily Chart
Markets are bearish on the pair
The SWFX trader open positions are 59% short. Meanwhile, trader set up orders are no longer bearish, as 52.67% of them were to buy on Monday, while on Friday 53.08% of pending commands were set to sell.
Traders of OANDA remain largely bearish, as 66.00% of open positions are short. Meanwhile, SAXO bank clients are also not changing their opinion, as 63.48% of traders are short, compared to 62.73% previously.
Spreads (avg, pip) / Trading volume / Volatility