The EUR/USD currency pair has been trying to surpass the support level - the weekly S3 at 1.1275 since Tuesday.
Given, that the pair is pressured by the 55-hour moving average, it is likely, that some downside potential could prevail in the market. Also, it is unlikely, that high volatility could occur, as the US market is closed today.
The European Common Currency traded sideways against the US Dollar, following the US ISM Non-Manufacturing PMI data release on Wednesday at 14:00 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.04% right after the release. The Euro continued trading at 1.1295 the level against the Greenback.
Institute for Supply Management released the US ISM Non-Manufacturing PMI data , which came out worse-than-expected of 55.1 compared with the forecast of 56.1.
According to the official release: "The NMI registered 55.1 percent, which is 1.8 percentage points lower than the May reading of 56.9 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since July 2017, when it registered 55.1 percent. According to the NMI, 16 non-manufacturing industries reported growth. Although the non-manufacturing sector's growth rate dipped in June, the sector continues to reflect strength. The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs."
US employment data set on focus
The week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
On the EUR/USD charts this event has caused moves in a range from 13.3 to 48 pips since February.
EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair traded sideways between the weekly S3 at 1.1275 and the 55-hour moving average, currently located at 1.1289. During Thursday's morning, the pair continued to trade within the given cluster.On the one hand, the exchange rate could surpass the given support level and go downside. In this case, the rate could surpass the psychological level at the 1.1260 mark.
On the other hand, the pair could continue to trade sideways within the cluster formed by the given support level, as well the resistance formed by the 100-hour SMA, the weekly S2 and the monthly PP at 1.1310.
Hourly Chart
On the daily candle chart, the rate has made a decline in accordance with a large scale ascending pattern. Namely, it bounced off its upper trend line last week and has begun to move to the lower trend line of the pattern.
In addition, as it was described on Monday, the 200-day simple moving average provided resistance that pushed the rate down.
Note, that the rate is supported by the 100-day moving average at the 1.1264 mark.
Daily chart
On Thursday, 74% of all positions on Swiss Foreign Exchange were short.
Traders had stuck to their short positions for a whole week. In theory, traders, who are short since June 21 are in the green.
Meanwhile, on Thursday, trader set up pending orders in 100-pip range around the pair were neutral, as 52% of all orders were set to sell and 48% were to buy.