On Friday morning the EUR/USD plummeted downwards. The move was caused by the publication of the Markit German PMI data sets.
Our analysts were covering the data release live. A report on the event will be available in the near future.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate gained 64 pips or 0.56%. The European Single Currency continued trading at the 1.1420 area against the US Dollar.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
Donald Trump, the President of US wrote in a tweet: "The only problem our economy has is the Fed, They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"
Canadian data will end the week
On Friday, the last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.For more information watch this week's economic calendar analysis stream.
EUR/USD hourly chart's review
On Friday, the German PMI data beat the rate down. During the hour, starting at 08:00 GMT, the hourly candle lost 100 base points.At the time, it seemed that the decline was stopped by the support levels near the 1.1300 level. Due to that reason a retracement upwards was expected.
On the other hand, if the rate passes the support levels at that mark, it could continue its descent down to the next support levels. Next close by technical support levels were located at 1.1250.
Hourly Chart
During the recent volatility the currency exchange rate broke the upper trend line of a descending channel pattern near the 1.1365 level.
Meanwhile, the pair remains in a larger scale ascending pattern. The upper trend line of this pattern on Friday was located near the 1.1450 level.
In general, the daily chart does not help in forecasting the short term moves, as the rate reacts to various fundamental events, which cause moves of more than 100 base points.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 74% of volume was shorting the EUR/USD.
Meanwhile, trader set up pending orders in the 100-pip range were neutral. Namely, 52% of pending orders were set to sell.
Despite the recent sudden jump upwards, the EUR/USD traders remained short. The short position profited during the fundamental fall caused by the data release of the German PMIs.