- SWFX market sentiment is 65% bullish (-1%)
- 58% of pending orders in 100-pip range are to SELL the Euro
- Upcoming fundamental events: US Unemployment Data package at 12:30 GMT
Even the 55-hour SMA was breached late on Thursday, the currency exchange rate had retreated back to the 1.1960 mark by the middle of the day.
The Greenback weakened against the Eurozone's single currency, following US ISM Non-Manufacturing PMI data release on Thursday. The EUR/USD currency pair gained only two pips, or 0.02%, however reversed later on and continued to go downwards, thus strengthening US dollar.
The Institute for Supply Management released lower-than-expected Non-Manufacturing Purchasing Managers' Index data of 56.8 for the month of April.
"The trade tensions are impacting purchasing of steel and are causing suppliers to send letters of concern," a respondent from the construction industry said.
US employment data
Today Swing Traders will be paying attention to the US monthly employment data sets, which will be released at 12:30 GMT.
Tune in to see the live coverage done by Dukascopy analysts on our live webinar platform at 12:20 GMT. In addition, at 12:00 GMT this week's Friday webinar of the Analytics team will start. This Friday a full overview of our publications is planned together with a questions and answers session in the chat.
EUR/USD bounces off junior resistance
The pair's surge was stopped by the upper trend line of a junior channel pattern just below the 1.20 mark. The event has resulted in the rates decline that on Friday morning had declined below two resistance levels near the 1.1980 level.
In regards to the near future, the pair was expected to make another attempt to pass the dominant support line below the 1.1940 mark.
Hourly Chart
The common European currency continues to fall against the US Dollar for the second consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
Initially it was though that a reversal might occur near the 1.22 mark. However, the decline of the Euro has continued as low as 1.1950 level. At that level on Thursday the currency exchange rate paused. That means that we might see a narrow ranged surge eventually.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 65% of open positions being long (-1%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 52% bullish and the US Dollar is 61% bearish.
The market sentiment of OANDA has become neutral, as 50% of its traders are holding short positions. Meanwhile, Saxo Bank clients are bearish with 53% of open positions being short.
Spreads (avg, pip) / Trading volume / Volatility