In theory, the pattern should squeeze the rate in, as the resistance line would force the rate into the support zone. Eventually, a break out up or down should occur.
Economic Calendar Analysis
No more notable events are scheduled for this week. Next week's review is set to be published on Monday.
EUR/USD hourly chart's review
In the case of the pair breaking the resistance line, the EUR/USD might aim at the weekly simple pivot point at 1.1345. Although, take into account that the 1.1330 mark might slow down a surge.On the other hand, a decline of the pair would first reach the support zone at 1.1272/1.1277. Below the support zone, December 21 and 22 low levels could stop a decline at 1.1260/1.1265.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has been going nowhere during the whole of December, as the rate appears to be bouncing around the 1.1300 mark.Meanwhile, note the approaching 50-day simple moving average. The SMA might provide resistance and cause another test of the support of the 1.1200 mark and the 38.20% Fibonacci retracement level.
Daily chart
Read More: Technical Analysis
Traders are long
Since Thursday, on the Swiss Foreign Exchange trader open positions were long, as 63% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 53% to buy the Euro against the USD.
On Wednesday, the sentiment was 62% long and pending orders were 53% to sell.