- SWFX market sentiment is 56% bearish
- 55% of pending orders in 100-pip range are set to BUY
- 53% of traders are bullish on the Dollar
- Upcoming Events: US Core Durable Goods Orders, FOMC Meeting Minutes, Crude Oil Inventories
In result of the previous trading session, the currency rate slightly crossed the bottom boundary of a large ascending channel. But since the border was additionally backed up by the 200-hour SMA, the pair was forced to return back into formation and start testing combined resistance area near the 1.1770 mark.
The EUR/USD pair's moving trand was little changed on the US excisting home sales release. The Euro decreased 3 base points against the US Dollar to the 1.1735 mark, to keep flactuating between the 1.1735 and 1.17500 levels, including an initially-offset increase after the Fed's Chair Janet Yellen delivered a speech.
The National Association of Realtors reported that the US existing home sales rose more than anticipated in October, revealing 2.0% gain to a seasonally adjusted yearly rate of 5.48M units in the reported month. The NAR noted that house prices were still under pressure due to the shortage of available properties, remaining beyond the levels acceptable for some first-time buyers.
Durable Goods Orders
Today all eyes are on release of information on the US Core Durable Goods Orders that will happen at 13:30 GMT. However, the subsequent publication of the FOMC Meeting Minutes might also provide some insights about the Fed's plans for the upcoming year.
EUR/USD tries to rebound from 200-hour SMA
In line with expectations, the pressure exercised by 100-day SMA shoved the currency rate out of the channel. Nevertheless, as the pattern was additionally backed up by the 200-hour SMA, the pair did not make a fully-fledged breakout. For this reason, bulls are expected to continue pushing the rate towards the upper trend-line of a junior descending channel that crosses combined resistance level formed by the 100-hour SMA, the weekly PP and the 38.2% Fibonacci retracement level near the 1.1760 mark. As traders are largely bearish on this currency pair, a breakout to the top seems unlikely. Moreover, the northern side remains protected by the above 100-day SMA. In this sense, the only thing that could strongly decrease value of the buck would be release of worse than expected American Core Durable Goods Orders data.
Hourly Chart
The 100-day SMA, indeed, did not let the Euro to gain some ground against the Dollar. For this reason, it is expected to play this role today as well. The only thing that might cancel the new rebound would be the disappointing release of the US Core Durable Goods Orders.
Daily Chart
Traders stay bearish
In result of the previous trading session the bearish market sentiment slightly decreased, as 56% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 63% bearish and the Dollar is 53% bullish.
Traders of OANDA remain bearish, as 59% (+0%) of open positions are short. Meanwhile, SAXO are neutrally bearish on this currency pair with 59% (+0%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility