The EUR/USD has jumped back up to 1.1200 level. The move occurred in a sudden sharp move at the middle of Thursday.
However, before the jump the rate reached the 1.1100 level. Note that our analysts had set the target of the pair at 1.1120.
It means that the rate clearly reached below the target and scored even more than expected before surging up.
The European Common Currency traded sideways against the US Dollar, following the FOMC Meeting Minutes data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate lost 4 pips or 0.04% right after the release. The Euro continued trading at the 1.1155 level against the Greenback.
The Federal Reserve released the FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
The US policymakers showed that they were in no rush to change interest rates, despite the fact that the US economy remains to strengthen. Members of the Federal Open Market Committee voted on leaving the rates unchanged, as they continue to use "wait-and-see" approach.
Last event left for EUR/USD
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.EUR/USD hourly chart's review
After the sharp surge that started on Thursday, the EUR/USD was located below the 1.1200 level during Friday's morning London hours.In general, as the rate had already managed to consolidate its gains during the night, it was expected to surge. Namely, the rate was expected to test the resistance of 1.1200. If that level would get broken, the 1.1217 pivot point should be aimed at.
On the other hand, the rate could trade near the 1.1180 level until the additional technical support of the 55 and 100-hour simple moving averages approaches the pair from below.
Hourly Chart
On the daily candle chart, it could be seen that the rates bounce off was consistent with the larger pattern. Namely, the rate bounced off the support of a dominant pattern near 1.1100.
In theory, if the pair passes the 1.1200 level, it should eventually reach the 55-day simple moving average and the resistance trend line near 1.1230.
Daily chart
Traders continued to short the EUR/USD on Friday. Despite the sudden surge, most open position volume is in short positions.
Namely, by the middle of the London trading session 68% of all open position volume on the Swiss Foreign Exchange was in short positions.
In addition, trader set up pending orders in the 100-pip range were bearish. Namely, 57% of all orders were to sell.