- SWFX market sentiment is 58% bearish
- 56% of pending orders in 100-pip range are set to BUY
- 57% of traders are bullish on the Dollar
- Upcoming Events: US US Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate
Yesterday the currency rate expectedly failed to break through the combined support level and was forced to make a rebound. In the first half of Friday, another unsuccessful attempt is expected to follow. Most probably, the pair will bounce off already near the 1.1880 level, as it represents location of the updated monthly PP.
The EUR/USD currency pair confirmed an upward trend on Thursday, as the US economic reports failed to provide sufficient support for the Greenback. The Euro gained 0.17% against the US Dollar to continue a side move above the 1.1890 mark until the Friday morning session.
The National Association of Realtors revealed that pending home sales in the United States fell 0.8% over the month of July, as the property market kept facing hurdles form a limited supply of available houses, which pushed prices up. The report suggested that sales would not break out in the coming months, as inventories are unlikely to improve significantly, while higher property prices are set to continue outpacing wage growth further, causing more strains on first-time buyers.
US employment data in focus
The last day of this trading week will be marked by a traditional release of the US employment data, consisting of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate. Each data separately does not arouse any particular interest among traders, but taken together they usually cause certain volatility in the markets. The Dukascopy Research Team invites everyone to join our online coverage of this news evet at 12:30 GMT.
EUR/USD makes an expected rebound
In line with expectations, yesterday the buck relentlessly tried to break though the combined support level formed by the monthly PP, the 200-hour SMA and the ascending channel's bottom boundary. As it was suspected, it managed to slightly overstep beyond the barrier. However, the downside momentum was not strong enough to fix the result.
Today the pair is expected to make one more unsuccessful attempt to slip to the bottom. The only difference is that this time the southern side will be additionally secured by the weekly PP at 1.1881. Similarly to the previous trading day, it might break to the bottom.
But, in any case, the fall is not expected to go below the 1.1840-50 mark, as it represents a location of the dominant ascending channel's lower trend-line.
Hourly Chart
In result of the Thursday's trading session, the currency pair stopped in front of the bottom boundary a long-term ascending channel. Accordingly, the breakout to the south is unlikely to happen. And even a release of the fundamental data later this day is not expected to substantially change the overall situation.
Daily Chart
Traders are bearish on the pair
The SWFX market sentiment remained at the same level as yesterday, which was 58% bearish. Accordingly, the outlook for the Euro is 62% bearish, while for the Dollar 57% bullish.
Traders of OANDA remain bearish, as 62.50% of open positions are short. Meanwhile, SAXO bank clients slightly changed their opinion, as 61% of traders are short, compared to 60 % previously.
Spreads (avg, pip) / Trading volume / Volatility