- SWFX market sentiment is 62% bearish (-4%)
- 51% of pending orders in the 100-pip range are to BUY the Greenback
- Upside target for today around 112.80
- Upcoming events: ISM Manufacturing PMI, FOMC Meeting Minutes
Factory activity in Chicago strengthened again by the end of the year, according to the MNI survey.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
FOMC Meeting Minutes
The US Institute for Supply Management is to publish its Manufacturing PMI for the month of December at 1500GMT. In addition, the Federal Reserve will release its Meeting Minutes at 1900GMT.
USD/JPY recovers some positions after fall
The US Dollar started Tuesday's trading sessions with minor losses, as the pair was pressured southwards by the 55-hour SMA. Any attempts to breach this line were disrupted by a significant 49-pip plunge later in the session as a result of which the Greenback fell down to the 112.10 mark.Some positions were re-gained during the following hours, thus leaving the rate slightly below the 55-hour SMA once again. It is very likely that the 112.50 area, likewise reinforced by the 50.0% Fibo retracement, limits further advances during the following hours.
This situation might change later in the session when US fundamentals are to be released. An ultimate daily high could be near the 112.80 mark.
Hourly chart
The strong bearish sentiment that prevailed in the market for the previous three sessions have allayed, thus pointing to a possible reversal during the following trading days.
Apart from the 100-day SMA at 112.06, there are no daily indicators that could affect the pair in this session.
Daily chart
SWFX market sentiment is bearish, as 62% of open positons are short (-4%). Meanwhile, 56% of pending orders are to buy the US Dollar (unchanged from Tuesday).
OANDA traders are slightly bearish on the pair, as they are holding 52% short positions in this session (+1%). Market sentiment of Saxo Bank has turned bullish with 53% long positions.