- SWFX market sentiment is 61% bullish today
- Pending orders in the 100-pip range are set to buy in 55% of cases
- Wednesday's data releases have come
On Wednesday, the EUR/USD was trading in limbo around the 1.15 mark. The level was reached after the pair managed to find support and surge after piercing the lower trend line of a dominant pattern.
The European Single Currency appreciated against the US Dollar, following the US Employment data sets release on Friday at 12:30 GMT. The EUR/USD exchange currency rate gained 24 pips or 0.20% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1520 area.
The Bureau of Labor Statistics released Non-Farm Employment Change data lower-than-expected of 134k compared with forecasted 185K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The Labor Department commented that the unemployment rate fell to 3.7% in September from 3.9% in August. The unemployment rate had been expected to edge down to 3.8%.
Wednesday has come with data
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
EUR/USD short term review
In regards to the near-term future, most likely, the European Single Currency will trade sideways due to the resistance of the 200-hour SMA and the support of the monthly S1 at the 1.1482 mark. The rate should stay at the 1.1500 level during the day.However, the 200-hour SMA could resist the currency exchange pair to pass through the monthly S1 to trade near the 50.00% Fibo on Wednesday.
Hourly Chart
The previous assumptions about the daily chart were wrong. The rate suddenly rebounded at 1.1440 and managed to surge back up to trade into the daily chart's ascending pattern.
On Wednesday, the lower trend line of the pattern was strengthening the support of the monthly S1 at the 1.1483 mark.
Daily chart
Swiss traders continue to be long on the EUR/USD. Namely, 62% of all open EUR/USD positions were long during the day.
Meanwhile, all of the traders have prepared pending trade orders, which might be executed in certain situations. All the take profits, stop losses, and position opening orders were set to sell in 53% of all cases.
Due to the orders being almost neutral, it is unlikely that the retail sector can cause a decline by executing them.