- SWFX market sentiment is 52% bearish today
- Pending orders in the 100-pip range are 53% to sell
- Next fundamental data will be released on Wednesday
The EUR/USD has bounced off the resistance of 1.1380 level and fulfilled the forecast of declining down to the levels near 1.1300. Meanwhile, the near term future seems to be unclear, as the larger scale and smaller scale charts send various signals.
The European Single Currency appreciated against the US Dollar, following the US Durable Goods Orders data release on Wednesday at 13:30 GMT. The EUR/USD exchange currency rate gained 6 pips or 0.06% during a minute, right after the release. The European Single Currency continued trading at the 1.1400.00 area against the US Dollar.
The Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
Wait for Wednesday's US GDP
This week is the last one of the month. That means that it is bound to be empty in regards to macroeconomic data releases.First notable data release will occur this week on Wednesday. The US Preliminary GDP data will be published at 13:30 GMT. This data release is considered to be the most important among macroeconomic statistics. Although, it causes an increase of volatility around 10 to 20 base points.
On Wednesday, at 15:30 GMT the weekly US Crude Oil Inventories will be published and cause a bounce in oil prices.
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
All of these events will be covered live by Dukascopy Analytics. The live coverages will begin ten minutes before the event. They can be watched on the Dukascopy Webinars platform and the YouTube channel.
EUR/USD daily review
The common European currency failed to pass the resistance cluster at the 1.1380 level against the US Dollar. As forecast, the event has resulted in a decline. However, on Tuesday morning the currency exchange rate had still not reached its target at 1.13.In general, the rate is expected to reach the 1.13 mark, where a previously pierced through lower trend line of a large scale pattern is located at. If one looks at the larger scale patterns, it can be seen that the trend line is expected to be broken eventually.
Although, note that the support of 1.13 is bound to pause the decline of the EUR/USD. The rate will need additional resistance levels to pass the 1.13 and reach down to weekly S1 of the simple pivot points at 1.1289.
Hourly Chart
On the daily chart the support of the previously pierced pattern has already occurred. Due to that reason a retracement upwards was occurring on Tuesday morning. Although, note that it is still expected that the currency exchange rate will
Daily chart
Traders remain slightly bearish in regards to the EUR/USD. Namely, 52% of traders were short on Tuesday.
In the 100-pip range, on Friday 55% of orders were set to sell. On Monday, there orders had not changed. On Tuesday, the sell order proportion had declined to 53%.
Traders are shorting the decline downwards. Although, note that the bearish sentiment is not dominating.