In theory, the trend line should cause a surge in the borders of the pattern.
Economic Calendar Analysis
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released.
At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published. A EUR/USD move from 8.9 to 26.5 pips is possible.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On the hourly candle chart, pay all attention to the lower trend line of the channel up pattern.In theory, the rate should bounce off the support of the trend line and begin a surge, which should reach for a resistance cluster near 1.1860.
On the other hand, a fundamental announcement by the central banks or a macroeconomic release could cause a rate adjustment. Namely, better than expected US data or monetary easing would cause a sudden drop of the pair. A sudden drop could break the support of the pattern.
Hourly Chart
On the daily candle chart, if the rate continued to decline, it could look for support in the combination of the monthly S1 at 1.1767 and the lower trend line of a large scale channel up pattern.
Daily chart
Read More: Technical Analysis
Traders take profit from decline
On Wednesday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume was in short positions.
On Thursday the sentiment was 61% short. It is assumed that short term short traders have been taking profits.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 60% of all cases.