The decline of the rate found support in the 1.1830 level. In the near term future, the rate was expected to recover and test resistance levels.
Economic Calendar Analysis
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July, as the EUR/USD moved around ten pips during the announcement.
On Friday, watch out for the German PMI data at 07:30 GMT, as the EUR/USD rate could move more than ten pips.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
During Thursday's morning hours, the EUR/USD started a recovery, which was heading to the 100-hour SMA that was located at the 1.1877 level. If this level would get passed, the rate would aim at the resistance cluster at the 1.1900 mark.In the case of the 1.1900 level not holding, the currency exchange rate would retest previous high levels near 1.1960.
On the other hand, if the 100-hour SMA holds, the pair could decline first to the 200-hour SMA at 1.1827 and afterwards tot eh weekly simple pivot point at 1.1800.
Hourly Chart
On the daily candle chart, the pair remains in a larger channel up pattern, which has guided the pair since the middle of April.
Take into account that a 23.60% Fibonacci retracement level could provide resistance at the 1.2031 level.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Thursday, on the Swiss Foreign Exchange 67% of all EUR/USD open position volume was in short positions.
The sentiment was 64% short on Wednesday.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 52% of all cases.
Previously, the orders were 57% to buy.