Previously, on Wednesday, the US reached the support of the 200-hour simple moving average above the 1.0900 mark.
On Thursday, the EUR/USD was being pushed up by the 200-hour SMA and was about to face the resistance of the 55-hour SMA and the weekly simple pivot point at 1.0977.
Economic Calendar Analysis
This week, data can be ignored, as the fundamental background created by the coronavirus has made the historical data useless in regards to future move forecasting.
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 the start of Thursday's European trading hours, the EUR/USD was trading above the support of the 200-hour simple moving average. In the meantime it faced the resistance of the weekly pivot point and the 55-hour SMA at 1.0977. In addition, Dukascopy Analytics spotted a channel down pattern, which has been guiding this week's decline.In regards to the near term future, it was expected that the rate would get squeezed in between the 55 and 200-hour SMAs and trade sideways until the rate approaches the upper trend line of the channel down pattern.
Afterwards, a break out downwards was expected to occur. However, take into account that the trend line might not hold and the pair passes the resistance levels. In this case the rate would reach for the 1.1000 level.
Hourly Chart
On the daily candle chart, EUR/USD has reached the daily simple moving averages. It has removed its oversold pressure. Due to that reason it can now once again decline.
Daily chart
Read More: Technical Analysis
Short sentiment declines
By the middle of Thursday's GMT trading hours, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had remained almost unchanged since March 20. Traders remained short despite the recovery of the EUR/USD that has been occurring since that day.
During the previous trading sessions, they were recovering some of their losses.