In the meantime, the rate has surged too sharply in the recent past, which indicates that a retracement back or sideways trading could occur.
Economic Calendar Analysis
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The EUR/USD has moved from 15.7 to 28.9 pips on the announcement.
Next week, there are couple events that could affect the EUR/USD currency pair.
On Thursday, at 12:45 GMT the ECB is set to publish its monetary policy statement. The ECB is bound to reveal their monetary stimulus measures. The EUR/USD has moved from 7.2 to 60.0 pips on the announcement.
On the same day, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT. The Unemployment Claims have recently caused EUR/USD moves from 6.2 to 14.5 pips. In the meantime, the CPI has caused moves from 5.4 to 12.4 pips.
The week is set to end with the US Producers Price Index, which has caused moves from 6.9 to 48.9 pips. Although, note that without the 48.9 pip release, the range of moves is from 6.9 to 12.2 base points.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
Since the second half of Thursday, the EUR/USD currency pair has been testing the 1.2170 mark.If the predetermined level holds, it is likely that a reversal south could occur, and the exchange rate could decline to the support area formed by the weekly R1 and R2, as well the 100-hour SMA in the 1.2020/1.2075 range.
In the meantime, note that the currency pair could gain support from the 55-hour moving average near 1.2115 and continue to extend gains in the short term. In this case the pair could target the 1.2250 level.
Hourly Chart
On the daily candle chart, the rate remains overbought, as the closest by daily simple moving average were located at the 1.1800 mark. At that level the 55- and 100-day SMAs were moving sideways.
In the meantime, note that the 2018 high level of 1.2528 is marked on the chart.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, on the Swiss Foreign Exchange trader open positions were bearish, as 61% of open position volume was in short positions.
On Thursday, the sentiment was 62% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the pair.