- SWFX market sentiment is 63% bullish (-2%)
- 58% of pending orders in 100-pip range are to SELL the Euro
- Quiet day in terms of fundamentals
- Bank Holiday in Germany and France
A surge should follow if EUR/USD breaches the 100-hour SMA at 1.1790.
The Greenback weakened against the Eurozone's single currency, following US Retail Sales data release on Tuesday. The EUR/USD currency pair gained only 2 pips, or 0.02%, to continue fluctuating in the 1.1805 area.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Quiet day
There are no important fundamental releases on Tuesday. The only two events that are related to this currency pair are two minor ones, namely, the German Buba Monthly Report (time of release is tentative) and the US Richmond Manufacturing PMI at 1400GMT.
EUR/USD bounces from six-month low
The general tendency of the pair should remain northwards this week. Technical indicators, however, flash bearish signals for this session, suggesting that the 100-hour moving average might provide strong resistance for some time.
In case bears prevail, 1.1720 is unlikely to be breached. However, if the 1.18 mark is surpassed, the pair is expected to test the 200-hour SMA at 1.1850.
Hourly Chart
The common European currency continues to fall against the US Dollar for the third consecutive week. This massive decline has sent daily technical indicators in the strongly oversold territory.
Even if some bearish sentiment is still to prevail this week, the 38.20% Fibonacci retracement at 1.1740 is unlikely to be breached before the pair starts a new medium-term surge.
Daily Chart
Bulls remain in charge
EUR/USD remains strongly bullish with 63% of open positions being long (-2%).
The outlook for the two currencies against the rest of the traded financial instruments is as follows: the Euro is 58% bullish and the US Dollar is 62% bearish.
OANDA traders remain bullish with to 54% of open positions being long today (+1%). Saxo Bank clients share the same sentiment with 59% long positions (+6%).
Spreads (avg, pip) / Trading volume / Volatility