Short traders continue to gain on Friday, as the EUR/USD continued to decline during the morning hours of the London session.
In general, the rate had no technical support levels as low as the 1.1120 level, where a technical support level cluster begins.
The European Common Currency depreciated against the US Dollar, following the US FOMC Statement and Federal Funds Rate data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate lost 24 pips or 0.21% right after the release. The Euro continued trading at the 0.1200 level against the US Dollar.
The Federal Reserve released the FOMC Statement, where the policymakers provided in-depth insights into the economic and financial conditions that influenced their decision to maintain the interest rate unchanged.
According to the Statement, concerns about global economic growth, inflation rate lower than the target level, and tightening financial conditions are the main reasons for pausing on the interest rate hike.
Next up - employment data on Friday
On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
The rate has been slowly declining on Friday morning. The decline was going on due to the pair passing the support of the weekly PP and a Fibonacci retracement level near 1.1175.In general, the rate was expected to continue to decline, as it had no technical support as low as the 1.1120 level, where a cluster of support begins.
On the other hand, the rate could consolidate after the recent decline, as a too sharp too fast move usually is followed by sideways trading.
Hourly Chart
On the daily candle chart, the massive scale patterns have been adjusted. In general, the rate is set to be squeezed in between the resistance of a dominant pattern and the support of a junior.
This should result in a break out by the start of summer.
Meanwhile, note that the 55 and 100-day SMAs were providing resistance near 1.1280 and 1.1336.
Daily chart
On the Swiss Foreign Exchange, 72% of the total open position volume was in short positions.
Previously, 68% of volume was in short positions. After the breaking of the support levels, more traders have gone short.
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 58% of all orders were set to sell.
Even more people are ready to go short, if certain criteria is met. Some wait for a retracement up to go short. Some want the rate to drop down event more to sell.