- SWFX market sentiment is 52% bullish
- 56% of pending orders in 100-pip range are to SELL the Euro
- Upcoming data releases: US Preliminary UoM Consumer Sentiment
EUR/USD is likely to remain between the 55- and 200-hour SMAs today.
The Greenback weakened against the Eurozone's single currency, following the US Consumer Price Index data on Wednesday. The EUR/ USD currency gained only two pips, or 0.01%, to continue fluctuating in the 1.2386 area.
The Bureau of Labor Statistics revealed lower-than-expected data in Consumer Price Index in March. On month-to-month basis CPI showed its first decrease in 10 months by 0.1%, compared to a growth of 0.2% in the prior month. However, economists had forecast it to stay unchanged, the drop was caused by the decline in gasoline costs. Moreover, rising prices for rental accommodation and healthcare continued to put pressure on underlying inflation.
Uneventful day
The only fundamental data release today is the Preliminary Consumer Sentiment published by the University of Michigan at 1400GMT.
EUR/USD moves along 100-hour SMA
As previously expected, the Euro surrendered under the bearish pressure on Thursday and thus was pushed down to the 200-hour SMA at 1.23. The 55– and 100 -hour SMAs, the 23.60% Fibo retracement and the monthly PP was breached along the way.As previously expected, the Euro surrendered under the bearish pressure on Thursday and thus was pushed down to the 200-hour SMA at 1.23. The 55– and 100 -hour SMAs, the 23.60% Fibo retracement and the monthly PP was breached along the way.
The general tendency seems to be northwards; however, given that this session is likely to be rather uneventful, the Euro could lack the necessary strength to breach the 1.2360 level. The base scenario favours minor fluctuations in this session, with the range boundaries being located at the 55– and 200-hour SMAs.
Hourly Chart
The common European currency managed to breach the 55-day SMA and the prevailing senior channel late in March. This factor together with bearish technical indicators add some ground to the assumption that the pair is likely to edge lower during this week.
The nearest support cluster is set by the monthly S1, the weekly S2, the 100-hour SMA and the 50.00% Fibonacci retracement near 1.2150.
Daily Chart
Bearish sentiment grows stronger
The SWFX market sentiment for EUR/USD is 52% bullish.
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 56% bearish and the US Dollar is 52% bullish.
The bearish sentiment of OANDA traders stands at 57% (-3%). Saxo Bank clients share the same sentiment with 60% of open positions being short (-3%).
Spreads (avg, pip) / Trading volume / Volatility