- SWFX market sentiment is 59% bearish
- 53% of pending orders in 100-pip range are set to BUY
- 55% of traders are bullish on the Dollar
- Upcoming Events: Quiet Monday
The common European currency is continuing to advance against the Dollar in an attempt to reach the 1.20 mark. A short-term retreat back to 1.1880 is possible, although it should not change the overall upward scenario.
The Euro strenghtened against the Greenback on a survey indicating businesses felt more optimistic about their outlook. The EUR/USD rate rose 16 base points or 0.13% to 1.1874. Then, the European single currency rose further agains the US dollar on the speculation that German major opposition SPD party was considering another coalition government with Chancellor Angela Merkel's Union parties.
The Munich-based Institute for Economic Research Ifo revealed that business confidence in Germany hit another high, as companies reported stronger optimism about the future, while being slightly pessimistic about current situation. The report showed the Business Climate Index at 117.5 in November, following 116.8 in the previous month.
Empty Monday
There are no important macroeconomic data releases planned for the today.
EUR/USD climbs to 1.1940 and ready to move forwards
Even though the Euro climbed more sharply than expected amid the news that Angela Merkel agreed to form large coalition with the Social Democrats, the movement remained in line with general expectations. As long as the pair stays within the medium-term ascending channel that is backed up by the rising 55-, 100- and 200-hour SMAs, it is likely to continue advancing against the Dollar towards the 1.2000 mark that represents an intersection of the pattern's upper boundary and the monthly R2. In shorter perspective bears might try to gain a momentum, although the plunge is unlikely to exceed the 1.1870 level, as this area is secured by the 61.8% Fibonacci retracement level, one of the above MAs and the weekly PP. However, the red scenario is unlikely due to formation of a minor pennant pattern, which presupposes further surge.
Hourly Chart
On daily chart the currency pair is actively surging in a sharp junior ascending channel, trying to reach the 1.20 mark. For now, the only notable alleged resistance that can halt the soar is located near the 1.1947 level. However, neither it, nor the upcoming data releases should cause a sudden turnaround.
Daily Chart
Traders stay bearish
In result of the previous trading session the bearish market sentiment did not change, as 59% 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 64% bearish and the Dollar is 55% bullish.
Traders of OANDA remain bearish, as 63% (-3%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 60% (+0%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility