On Thursday, the currency pair declined and passed below the 1.0800 mark. However, the decline found support in the 1.0780 level and afterwards broke the potential resistance of the prior support of 1.0800.
Economic Calendar Analysis
On Friday, the US monthly employment data sets are bound to move the markets. At 12:30 GMT, the US Bureau of Labor Statistics will publish the Average Hourly Earnings, Non-Farm Employment and the Unemployment Rate. Better than expected data is set to strengthen the USD. Below forecast numbers are likely to cause a decline of the USD.
EUR/USD hourly chart analysis
If the recovery of the EUR/USD continues, the rate is expected to encounter resistance first in the combination of the 50-hour SMA and the weekly S1 simple pivot point at 1.0820. Above these technical levels, the 1.0825/1.0830 range and the 100-hour SMA are set to act as resistance. If these levels fail, the 1.0840/1.0850 range and the 200-hour SMA will come into play.However, in the case of the pair resuming the prior decline, support might be found in the previously failed 1.0800 mark, the weekly S2 at 1.0784 and the 1.0780 level, before the rate reaches the 1.0745/1.0760.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has passed below the 50-day simple moving average. Moreover, on Thursday, the EUR/USD was piercing the support of the 100-day SMA.If the rate passes below the last moving average, it might result in a broader decline that would be looking for support in the 1.0635/1.0700 range.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, Dukascopy traders were neutral, as 52% of all open position volume was in short positions.
Meanwhile, pending trader set up orders were also neutral. Namely, in the 100-point range around the pair 51% of orders were to sell and 49% were to buy.
On Thursday, the open positions were 53% long and pending orders were 51% to buy. It appears that traders were still not sure where the EUR/USD will be heading next.