- SWFX market sentiment is 59% bearish
- 53% of pending orders in 100-pip range are set to BUY
- 56% of traders are bullish on the Dollar
- Upcoming Events: Fed Chair Designate Powell Speaks, CB Consumer Confidence, Trump meets with Senate Republicans
Due to hawkish remarks made by the Fed Kaplan, the Dollar gained some momentum and dragged the pair back to the 55-hour SMA located at 1.19. In general, the surge of the rate towards the 1.20 mark is expected to resume. In the meantime, there a couple of fundamental event in the US that might cause another temporary appreciation of the buck.
The European single currency remained relatively strong against the Greenback, despite much stronger-than-anticipated the US new home sales figures. Following the report, EUR/USD depreciated 9 pips or 0.07% to 1.1930 to remain above the 1.1900 level despite some bearish signals.
Sales of new single-family homes in the US marked solid increase to reach a ten-year high due to robust demand throughout the country, providing a boost to the property market. The Commerce Department showed that new home sales rose 6.2% to a seasonally adjusted yearly rate of 685K in October, the highest level in ten years. Moreover, upbeat results indicated that housing kept gaining momentum after the lack of available properties and suitable land restrained the growth.
Powell's confirmation hearing
Today there are scheduled a number of events that might lead to temporary appreciation of the Dollar. At 14:45 GMT the new Fed Chair Jerome Powell will start testifying before the Congress. At 15:00 GMT the Conference Board will published its latest survey about consumer sentiment. In addition to that, though the day President Trump is expected to meet with Senate Republicans and discuss tax reform.
EUR/USD anticipates Powell's appear before Congress
After reaching the 1.1960 level the currency exchange rate returned back to the 55-hour SMA located at 1.1900, as expected. The correction was based on hawkish comments made by the Fed's Kaplan as well as anticipation of the Governor Powell appear before Congress and Trump's meeting with Senate Republicans regarding the new tax reform. If traders concentrate on positive moments of those meetings, the pair is likely to plunge even further, towards combined support formed by the weekly PP and the 100-hour SMA near 1.1865. Even though bears might take the lead in second half of the day, the overall movement of the rate is still expected to be guided by bulls. Their first goal is expected to be the new resistance at 1.1960, while the ultimate is located at 1.2000.
Hourly Chart
On daily chart the currency pair is continuing to active advance in sharp junior ascending channel, trying to reach the 1.2000 target. At the moment, supposed resistance barriers are located near the 1.1960 and 1.1995 levels. The opposite side, in turn, contains the 61.8% Fibonacci retracement level at the 1.1887 mark and presents a more significant barrier. Hence, the surge of the rate is likely to continue.
Daily Chart
Market sentiment is 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 66% bearish and the Dollar is 56% bullish.
Traders of OANDA remain bearish, as 64% (+1%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 58% (-2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility