On Thursday, the EUR/USD got squeezed in between the support of the 100-hour SMA and the resistance of the 1.1200 level.
The future scenarios for the rate were based upon how the squeeze could end.Economic Calendar Analysis
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 30.12-03.01 Event Historical Reactions
EUR/USD hourly chart's review
On Thursday morning, the year's trading started with the EUR/USD declining below the 1.1200 level. By the middle of the day, the rate was approaching the support of the 100-hour simple moving average.If the SMA provides technical support to the pair and stops the decline, the rate should fluctuate sideways just above the 1.1180 level or surge up to the resistance of the 1.1200 level.
On the other hand, if the SMA fails to stop the fall, the rate would decline as low as 1.1150. Near that level the monthly pivot point is located at.
Hourly Chart
On the daily candle chart, the pair has pierced the 61.80% Fibonacci retracement level at 1.1194. It is a signal that the pair can reach for higher high levels.
In the meantime, the rate has left far below it the daily simple moving averages, which is an indicator of the pair being overbought.
Daily chart
Read More: Technical Analysis
Traders are short
On Thursday, 71% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were bearish, as 72% of orders in the 100-pip range were to sell and 28% were to buy.