In the future, the rate was expected to reach the 1.1900 level, where the next cluster of resistance was located at.
Economic Calendar Analysis
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
In the near term future, the rate is expected to reach the 1.1900 level, where it would meet with the August high level, weekly R1 and the psychological resistance effect of the round price level.However, the rate could consolidate below one of the round exchange rate levels. For example, on Thursday, resistance was provided by the 1.1840 level.
The consolidation in the form of a decline or sideways trading could be stopped by the approaching of the hourly simple moving averages. The SMAs would provide support and push the rate up.
Hourly Chart
On the daily candle chart, the pair has bounced off the upper trend line of the channel up pattern, which had been guiding its surge since the second part of April.
If the pair respects the pattern, it could reach for its lower trend line. However, in the meantime, a 38.20% Fibo could provide support near 1.1700. These facts combined signal that the rate would trade sideways until September.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Friday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume has been in short positions.
However, for a short period of time on Wednesday, the sentiment increased to 66% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 56% of all cases.