- SWFX market sentiment is 63% bullish today
- Pending orders in the 100-pip range are 55% to buy
- Traders wait for Friday's US Employment data
After confirming the 1.1360 level as resistance, the EUR/USD declined and reached a new low level on Wednesday. In addition, there was no support to the currency exchange rate as low as the 1.1310 mark, which was expected to be reached by the end of the week.
The European Single Currency depreciated against the US Dollar, following the US CB Consumer Confidence survey on Tuesday at 14:00 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.05% during a minute, right after the release. The European Single Currency continued trading at the 1.1364 area.
The Conference Board Inc. released US CB Consumer Confidence survey number that came out better than expected of 137.9, compare to forecasted 136.3.
"Consumers' assessment of present-day conditions remains quite positive, primarily due to strong employment growth. The Expectations Index posted another gain in October, suggesting that consumers do not foresee the economy losing steam anytime soon. Rather, they expect the strong pace of growth to carry over into early 2019." said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
Markets will await for Friday
The only notable event scheduled this week that is expected to impact the EUR/USD currency exchange rate will be published on Friday.
Namely, the US Employment data sets will be published at 12:30 GMT. The Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate will be released at that time.
The data release will be covered by the Dukascopy Analytics team live. Join the webinar platform or Dukascopy Webinars YouTube channel's live stream at 12:20 GMT to see the coverage.
EUR/USD short term review
In regards to the near-term future, most likely, the currency rate will trade downside towards the weekly S1 at 1.1310. The monthly S2 resistance level will retrace the rate from the surge during the trading day on Wednesday.Hourly Chart
The daily chart has been updated to show the previously broken ascending pattern and the two active channel down patterns.
The pair recently bounced off the support of a dominant pattern. Due to that reason it can be expected that the smaller one of the two channel down patterns might be broken in the near future.
Daily chart
Since Monday, 63% of all traders were long on the EUR/USD. The sentiment has been long for more than a week.
Meanwhile, traders had their pending orders set up mostly to sell the EUR/USD, as 57% of all trader set up orders were set to sell the pair.
Traders want to take advantage of a rebound upwards. However, the retail sector will not provide a push upwards or downwards, as their pending orders are set to sell.
Most likely the orders are take profits and stop losses for the long positions.