- SWFX market sentiment is neutral
- Pending orders in the 100-pip range set to buy in 52% of cases
- New week and new data releases
On Monday morning the EUR/USD traded with high volatility, as after surging up to the 1.1380 level it declined in a sudden sharp move. The moves were mostly caused by the G20 summit, which occurred during the weekend. Details of the agreement between the US and China about trade continued to surface on Monday and influence the strength of the USD.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release on Thursday at 19:00 GMT. The EUR/USD exchange currency rate gained 18 pips or 0.16% during a minute, right after the release. The European Single Currency continued trading at the 1.138 area against the US Dollar.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
First week of the month is the busiest one
It is the first week of the month. Already on Monday morning notable data was published in the UK. Namely, the UK Manufacturing PMI was published at 09:30 GMT.Next up traders will concentrate on the UK Construction PMI on Tuesday at 09:30 GMT. The data release is expected to cause a minor reaction on the GBP/USD pairs.
On Wednesday, the ECB President Draghi might impact the EUR/USD during his speech at 08:30 GMT. In addition the head of the Federal Reserve will testify at 13:15 GMT before the congress. However, these events will note be covered by Dukascopy Analytics.
At 13:15 GMT the ADP Non-Farm Employment Change is set to be published. This data release will be covered by Dukascopy Anlaytics live on YouTube and Telefision.
That will not be all on Wednesday. At 15:00 GMT the Bank of Canada will make interest rate announcement. This event has caused the largest fluctuations in the forex markets during 2018. This will be the top event for the month for macroeconomic event traders.
Moreover, the weekly Crude Oil Inventories will be published at 15:30 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
EUR/USD daily review
The EUR/USD is dictated by the trade talks. Namely, they affect the strength of the US Dollar by strengthening it. From a technical analysis perspective the levels are becoming obsolete during this fundamental adjustment.The rate is expected to continue to decline, as new information is released and it strengthens the USD.
Hourly Chart
On the daily chart the currency exchange rate remains in the borders of the descending channel pattern. In the longer term the decline is still expected to occur.
Daily chart
On Monday, the trader open positions on the Swiss Foreign Exchange in regards to the EUR/USD had become perfectly balanced 50/50. Meaning, half of traders were long and the second half were shorting the pair.
Meanwhile, trader pending orders in the 100-pip range were set to buy the EUR/USD in 53% of all cases. Previously, there were more sell orders than buy orders.