- SWFX market sentiment is 55% bearish
- 54% of pending orders in 100-pip range are set to BUY
- 52% of traders are bullish on the Dollar
- Upcoming Events: German Buba President Weidmann Speaks, US Existing Home Sales, Crude Oil Inventories
The common European currency continued to advance against the Dollar yesterday, reaching the 1.1845 mark. Today the rate most probably will continue climbing to the top in an attempt to reach the upper trend-line of a senior descending channel.
The Euro revealed a deceptive increase against the Greenback on Germany's business climate data. The EUR/USD exchange rate added 4 base points to the 1.1809 mark and continued the session to continued being magnetized to the 1.1820 area.
German business sentiment fell unexpectedly this month after reaching an all-time high in November, a survey revealed on Tuesday, indicating the political deadlock in the country was clouding the outlook. The Munich-based Institute for Economic Research Ifo reported that Germany's business confidence dropped to 117.2. However, experts warned of not over-interpreting the decline, as it could be difficult to anticipate better business conditions.
Calm Wednesday
Although economic calendar is not empty today, none of the events listed there should cause significant volatility in the markets.
EUR/USD surges to 1.1850
Despite the fact that tax bill passed through the House, the currency exchange rate continued to move upwards and ended the day in the previously specified resistance zone located around the 1.1845 level. The further advance of Euro is possible, even though it is unlikely to exceed the 1.1860 mark, as this area represents location of the upper-boundary of a one-month long descending channel. A plunge below the monthly PP at 1.1806 is also doubtful, as it is additionally secured by the rising 55-, 100- and 200-hour SMAs. On the other hand, there is a need to take into account that there are scheduled no fundamental events for today except for the final vote in Senate. Unless the Congress sorts this issue out the fall of the rate may not even exceed the 50% Fibonacci retracement level at 1.1825.
Hourly Chart
Continuous appreciation of the Euro suggests on existence of another ascending channel that represents a part of a dominant descending pattern. If this assumption is true, then currency rate should continue moving upwards, trying to reach an area near the 1.1880 mark.
Daily Chart
Market sentiment is bearish
In result of the previous trading session the bearish market sentiment has increased, as 55% of open positions are short now.
In the meantime, the outlook for the two currencies against the rest of the traded financial instruments is the following: the Euro is 59% bearish and the Dollar is 52% bullish.
Traders of OANDA remain bearish, as 62% (+7%) of open positions are short. Meanwhile, SAXO are bearish on this currency pair with 60% (+2%) of open short positions.
Spreads (avg, pip) / Trading volume / Volatility