On the EUR/USD charts the pair had additional support of the 1.0900 mark and a recovery started. By mid-Thursday, the pair had broken through the resistance of the 1.0930/1.0935 range and the 50-hour simple moving average.
Economic Calendar Analysis
On Thursday, the US ADP Non-Farm Employment Change is capable of impacting the markets. The Automatic Data Processing released number usually is a good indicator of what the US government data will show, as it occurs prior to the official publication of employment numbers. The event is scheduled for 13:15 GMT.
On Friday, the US monthly employment data sets will be published. The event is scheduled for 13:30 GMT.
They are bound to impact the financial markets via the value of the US Dollar. Namely, good data reveals that inflation might return and the Fed would have to keep rates high or even cut. This would cause a surge of the Dollar. On the other hand, bad data would weaken the USD, as the Fed can cut rates.
EUR/USD hourly chart analysis
An extension of the ongoing surge is expected to face resistance in the 1.1000/1.1045 range. In this range there are two high and low level zones, the weekly R1 simple pivot point and the 100 and 200-hour simple moving averages.On the other hand, a decline might find support in the 1.0930/1.0935 zone and the 50-hour simple moving average, before once again approaching the 1.0900 mark. Further below, note the 1.0880/1.0890 range and the weekly simple pivot point at 1.0881.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the 1.1070/1.1100 high level range did not turn into support. Meanwhile, an examination of the chart reveals that there is additional support below the 1.0900 mark in the form of the lower trend line of the channel up pattern and the 50 and 200-day simple moving averages.Daily chart
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Traders are shorting
On Wednesday, traders were 66% short, as more expected a decline.
Meanwhile, pending orders in the 100-pip range around the pair were 55% to sell.
During Thursday's trading, positions were 58% short. In the meantime, pending orders were 54% to sell.