On Friday, the rate was finding support in the 1.0840/1.0850 range and minor resistance was provided by the 100-hour simple moving average. However, by mid-day the SMA was broken.
Economic Calendar Analysis
This week's notable events are over. Next week, there is nothing notable scheduled until Tuesday.
EUR/USD hourly chart analysis
Due to the passing above the 100-hour simple moving average, the rate is expected to soon approach and test the resistance of the 1.0870/1.0880 zone and the 200-hour simple moving average. If these levels fail, the rate might approach the 1.0900 mark.In the case of a potential decline of the EUR/USD support will be provided by the 50-hour simple moving average and the 1.0840/1.0850 range. Below this range, the 1.0825/1.0830 is expected to once again act as support, before the rate reaches 1.0800.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair's recovery has managed to break the resistance of the 50, 100 and 200-day simple moving averages.A move higher could encounter resistance at previous resistance levels that are near round exchange rate levels. If all of these levels fail, the 1.1130/1.1200 zone will come into play.
In the case of a decline of the pair, it would have to reach below the SMAs, before looking for support in the 1.0635/1.0700 range.
Daily chart
Read More: Technical Analysis
Traders go short
On Wednesday, Dukascopy traders were bearish on the EUR/USD, as 54% of open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the current rate are 52% to sell the Euro against the US Dollar.
On Friday, the open positons were 57% short and pending orders were 51% to sell.