- SWFX market sentiment is 53% bullish today
- Pending orders in the 100-pip range are 55% to buy
- Check out the weekly economic calendar review
The EUR/USD has passed below the 1.1300 mark. Meanwhile, note that the large scale horizontal pattern has been broken.
The European Single Currency appreciated against the US Dollar, following the US Federal Funds Rate release on Thursday at 19:00 GMT. The EUR/USD exchange currency rate gained 10 pips or 0.09% during a minute, right after the releases. The European Single Currency continued trading at the 1.1370 area against the US Dollar.
The Federal Reserve released US Federal Funds Rate that came out in line with expectation of 2.25%. In addition, the FOMC Statement data release came out on Friday at 19:00 GMT.
Marc Chandler, chief market strategist at Bannockburn Global Forex comments "Fed says little and does less. Recognizes strong economy and acknowledges moderation of business investment, with inflation near target. Nothing to do. No hint at money market pressures or weakness in housing. FOMC to market: See you in December. Gradual hikes to continue."
First US data will be released on Wednesday
This week macroeconomic data release traders will have a lot to do. Starting from Tuesday, almost each day a notable data release is expected to cause sudden fluctuations of at least ten base points.On Tuesday morning the UK Average Earnings Index and other employment data sets will be published. The data release will occur at 09:30 GMT.
On Wednesday, there are two data releases that are set to be covered. Namely, at 09:30 GMT the UK CPI will be published. Afterwards, at 13:30 GMT the US CPI and Core CPI data sets will be released.
Thursday will be the last day with notable data releases. At 09:30 GMT the British will publish their retail sales data. Afterwards, at 13:30 GMT the US statisticians will publish their retail sector data.
For more in-depth analysis of this week's fundamental economic events watch the weekly Monday's Poking the Economic Calendar webinar, which is live each Monday at 12:00 both on Dukascopy telefision and YouTube.
EUR/USD daily review
As the EUR/USD has already broken past the support levels at 1.1300 and 1.1270, it faces no support levels, as low as the 1.1200 level.Gradually the currency pair should reach the 1.12 mark. Although, at that level it will meet at least three technical support levels and stop.
Hourly Chart
On the daily chart one can see that the decline of the pair that followed passing the support of the large scale horizontal pattern was stopped by another trend line.
The rate was stopped by the support of a medium scale descending pattern, which represents the EUR/USD pair's decline, which started in late September.
Daily chart
On Monday, 53% of Dukascopy traders were bullish on the pair. The neutral sentiment had established itself after the US elections.
Meanwhile, traders are still prepared to sell the EUR/USD, as 54% of all trader set up orders are bearish.
Previously, our analysts noted that traders were ready to sell the pair, if it passes the 1.13 mark. On Monday, it could be observed that the sentiment hadn't changed largely, indicating that not many actually shorted the drop of the EUR/USD.