Economic Calendar Analysis
There are no notable events scheduled during the holiday week.
EUR/USD hourly chart analysis
An extension of the ongoing surge might be slowed down by the 1.1100 mark, before the pair approaches the weekly R2 simple pivot point at 1.1149 and the 1.1150 level.On the other hand, a decline of the Euro against the US Dollar is set to look for support in the 1.1038/1.1045 zone. Below this range, note the 50-hour simple moving average, the weekly R1 simple pivot point at 1.1020.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, as written previously, the pair has reached the first target of the breaking out from the squeeze between the daily simple moving averages. See the previously written analysis: "This break out to the upside could aim at the 1.1000 mark. Higher above, note the high level zones near 1.1100 and 1.1250."However, if the move gets overextended and a decline starts, it could look for support in the daily moving averages. First in the 200-day SMA near 1.0820 and afterwards the 50 and 100-day SMAs near 1.0775 and 1.0720.
In the meantime, we have spotted that the recent surge has confirmed the existence of a channel up pattern that captures the pair's surge since early October. The pattern is confirmed, as both resistance and support lines have two reference points.
Daily chart
Read More: Technical Analysis
Traders remain short
Last week, traders were 61% short and orders were 52% to buy. Despite the recovery, traders were shorting.
On Wednesday, traders were 68% short, as more expected a decline. Meanwhile, pending orders were 54% to sell.