- SWFX market sentiment is 58% bearish
- 64% of pending orders in 100-pip range are set to BUY
- 59.30% of traders remain bullish on the Dollar against the rest of the currency market
- Upcoming Events: US PPI and Crude Oil Inventories
Yesterday the currency pair expectedly failed to make a fully-fledged rebound from the bottom trend-line of a dominant formation due to pressure from the 55- and 100-hour SMAs. Today this pressure has increased even more due to additional resistance set up by the weekly PP at 1.1999. Hence, the pair is expected to slowly plunge towards the above channel's lower support line.
The JOLTS report showing an increase in the US job openings failed to result in the strengthening of the Greenback against the Euro on Tuesday. The bullish sentiment remained in the currency pair, as it continued trading session above the 1.954 level.
The Labour Department released its JOLTS report for July, where the amount of job openings rose surprisingly to 6.17M, following a downwardly revised figure of 6.12M in June. Data showed that slower job growth was temporary, while a new record high for the number of job openings indicated that demand for workers continued to be strong. Moreover, the labour market kept tightening due to a lack of skilled labour supply, though remained in a healthy growth state.
US PMI release
According to an economic calendar, today is expected to pass relatively quietly for the given currency pair. The only notable fundamental event will happen at 12:30 GMT, when the Bureau of Labour Statistics will release the latest data on the US PMI. This event will be covered by the Dukascopy Research Team during the Wednesday webinar.
EUR/USD tries to bypass 1.20 level
In line with expectations, a resistance created by the 55- and 100-hour SMAs prevented the further advance of the Euro against the Greenback. At the moment, this barrier is also strengthened by the weekly PP. For this reason, the pair is expected to fail to break to the top. However, a sharp decline should not happen as well, as the southern side remains reliably protected by the 200-hour SMA, which is moving along the lower support line of a long-term ascending channel. In other words, the rate is expected to stay for some time in this ascending triangle. On the other hand, an effect from release of data on the US PMI at 12:30 GMT might give a necessary impulse to bypass the above resistance a stay for some above the 1.9999 mark.
Hourly Chart
On a daily chart the currency pair returned to a place, where it was a week ago before announcement of the Euro Zone Official Bank Rate. In the upcoming days it will finally become clear, which pattern would guide further movement of the pair: medium-term or long-term ascending channel.
Daily Chart
Traders still bearish on the pair
The SWFX market sentiment remained unchanged since yesterday and now is 58% bearish. In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is as follows. Euro is 61% bearish, while for the Dollar 59.32% bullish.
Traders of OANDA remain bearish, as 58% of open positions are short. Meanwhile, SAXO are also bearish on this currency pair with 58% of open short positions.
Spreads (avg, pip) / Trading volume / Volatility