Early during Wednesday's London trading, the EUR/USD failed to gain momentum for a surge and dropped below the 55 and 100-hour simple moving averages. This event resulted in a decline.
By the middle of Wednesday's GMT hours, the rate had already reached the 1.1120 level.Economic Calendar Analysis
This week, there is one scheduled event left, which could cause an increase of volatility in the EUR/USD.
On Friday, December 20, the US Final GDP data will be published at 13:30 GMT. The EUR/USD has moved from 5.2 to 26.4 pips on the release since September 2018.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
EUR/USD hourly chart's review
Note that the exchange rate is pressured by the 55– and 100-hour moving averages at 1.1144. Thus, it is likely that some downside potential could prevail in the market.However, note that the currency pair could gain support of the 200-hour SMA at 1.1114. If the given support holds, it is likely that the Euro could consolidate against the US Dollar in the short term.
If the given resistance does not hold, it is likely that some upside potential could prevail in the market, and the exchange rate could target the psychological level at 1.1180.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of the 200-day moving average. The rate could gain support of the 55- and 100-day SMAs and breach the given resistance in the near future.
In regards to the longer term future, the rate could pass the 1.1200 level and surge up to the 1.1300 mark by the end of January.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
On Tuesday, 75% of open EUR/USD position volume was in short positions. The sentiment was 74% short on Wednesday.
During the most recent decline, these positions recovered from previous losses.
Meanwhile, pending trade orders were bearish, as 56% of orders in the 100-pip range were to sell and 44% were to buy.