As laid out in the main forecast on Thursday, on Friday the EUR/USD reached the targeted 1.1080 level. At that level the pair met with the resistance of a pivot point, which caused a decline.
By the middle of Friday's GMT trading hours, the rate had stopped above the 1.1000 level's support.
US Weekly Unemployment claims
On Thursday, the weekly US unemployment claims revealed that almost 3.3 million additional people are out of work. It indicates that massive layoffs are occurring. Namely, the coronavirus has hit the economy hard.The EUR/USD moved only 19 pips on these news, as the markets were already expecting a major downfall.
Economic Calendar Analysis
Next week, data can be ignored, as the fundamental background is so much changed that historical data does not matter.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
EUR/USD hourly chart's review
At mid-day on Friday, the EUR/USD was finding support in the psychological effect of the 1.1000 level, as round levels tend to impact currency exchange rates.In the case of the 1.1000 level failing to keep the rate up, the pair would look for support in the monthly pivot point at 1.0967. In addition, by the time the pair would reach the pivot point, it should be strengthened by the 55-hour SMA.
On the other hand, the EUR/USD could trade sideways until the support of the 55-hour SMA approaches and pushes it up. In this case the 1.1050 and afterwards 1.1080 levels would be tested.
Hourly Chart
On the daily candle chart, EUR/USD pierced the resistance of the 55 and 100-day simple moving averages, which stopped the rate's surge on Thursday.
In regards to the future, take into account that the 200-day simple moving average is strengthening the resistance of the weekly R1 simple pivot point at 1.1080.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
On Friday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had remained almost unchanged since the previous Friday.
Traders remain short despite the recovery of the EUR/USD that has been occurring since March 20.