- SWFX market sentiment is 52% bullish today
- Pending orders in the 100-pip range are neutral
- No more data actually impacting the EUR/USD this week
The pair has reached this week's target. Namely, the EUR/USD has surged up to the 1.1790 mark in a sudden jump after finally breaking the resistance levels at the 1.1720 mark.
The European Single Currency appreciated against the US Dollar, following the United States Retail Sales data release last Friday at 12:30 GMT. The EUR/USD exchange currency rate gained 12 pips or 0.10% during a minute, right after the release.
The Census Bureau released US Retail Sales data that came out lower-than-expected of 0.1%, compared to forecasted 0.4%. Economists and traders closely monitor the US Retail sales because they provide an early read on consumer spending, which drives about two-thirds of the US economic activity.
The August's US Retail Sales 0.1% growth was the weakest growth in the past 6 months due to automobile and clothing sale decrease. That compares to the 0.5% gain from July and missed economists' forecast for 0.4 %, but remained up 6.6 %year-over-year.
No more events impacting the EUR/USD
There will be no more notable data releases that might impact the EUR/USD. However, the most notable event for the macroeconomic traders is still set to occur.
On Friday, the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT. The rate is expected to fluctuate almost seventy base points during the data release. The event will be covered by Dukascopy Analytics on the bank's live webinar platform at 12:20 GMT.
EUR/USD short term review
On Thursday, the European Single Currency jumped against the US Dollar as it was expected. The rate ignored most technical levels to continue trading at the 1.1778 mark during Friday morning hours.In regards to the near-term future, most likely, the rate will continue to surge upwards until the rate meets the monthly R1 at 1.1792 mark, which could bounce the rate to go downwards to the 1.1760 level during the session.
On the other hand, the rate could break the resistance of the monthly R1 at 1.1792 to trade between the monthly R1 and the weekly R2 at 1.1819 mark on Friday.
Hourly Chart
The large scale ascending pattern, which was discovered on September 11, has pushed the currency rate higher. It can be expected that this pattern will continue to guide the currency exchange rate up to the 1.1900 mark.
Daily chart
Swiss trader short term oriented market sentiment is almost neutral. Namely, 52% of all traders have open long positions.
Meanwhile, all of the traders on SWFX have prepared pending trade orders, which might be executed in certain situations. Of all the take profits, stop losses, sell and buy orders 52% are set to sell the EUR/USD.
This means that, if the rate increases volatility, the retail sector will push the rate down, as it dumps its long positions by taking profits or shorting the EUR/USD.
In general, it can be noticed that the sentiment has become almost neutral on Friday. Most likely due to traders closing their long positions and taking profits during the surge.
Spreads (avg, pip) / Trading volume / Volatility