- SWFX market sentiment is 71% bearish (+3%)
- 55% of pending orders in 100-pip range are set to SELL
- 73% of pending commands are set to sell the Euro
- Bank Holiday in US
The US retail sales rose in December, as consumers bought more goods and the previous month's figures were revised up, indicating that the country's economy finished 2017 with solid momentum.
The Commerce Department stated that retail sales increased 0.4% in December, following an upwardly revised 0.9% gain previously. Data was likely to bolster expectations of a stronger increase in consumer spending in the Q4. Consumer spending, which contributes for more than 60% of the US economic activity, grew at a 2.2% yearly rate in the Q3.
US Bank Holiday
Banks in the US are closed due to Martin Luther King Day. Meanwhile, three sets of data from the Eurozone are to be published early on Tuesday, namely, the German Final Consume Price Index and the Wholesale Price Index at 0700GMT and the French Government Budget Balance at 0745GMT.
EUR/USD climbs to new 2017 high
The Euro continues to take advantage of the weakened US Dollar, driven by hopes on the new German coalition. The pair started its surge mid-Thursday and has since appreciated 2.37%. As a result, the it breached the upper boundary of an ascending channel valid since late October, as well as the rate had reached its highest point since 2015 by early today.As apparent on the chart, the strong upside momentum has allayed in this session due to the pair testing the monthly R2 at 1.2225. Technical indicators are located near their historic highs, thus pointing to a soon period of decline. This scenario, however, might not occur today, as the Euro could still push towards the weekly R1 at 1.2310.
In case the bearish sentiment takes over, the weekly PP and the monthly R1 circa 1.2115 are likely to limit the pair.
Hourly Chart
The common European currency continues to gain momentum against the US Dollar for the fourth consecutive session. The strong appreciation apparent on Friday pushed the rate further away from the prevailing channel up, as well as pushed through the 50.0% Fibo retracement at 1.2165.
Technical indicators suggest that the rate might still push slightly higher today or tomorrow, but the bearish sentiment should nevertheless prevail during the second part of this week, thus sending the Euro towards the 1.20 mark.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has increased, as 71% of open positions are short (+3%).
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 73% bearish and the Dollar is 60% bullish.
Traders of OANDA remain bearish, as 64% (+2%) of open positions are short. SAXO Bank clients are likewise bearish on the pair with 61% short positions (unchanged from Friday).
Spreads (avg, pip) / Trading volume / Volatility