On Thursday morning, the rate's drop reached the support of the 61.80% Fibonacci retracement level at 1.1707.
Economic Calendar Analysis
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. The EUR/USD has started to ignore this release since the middle of September. Since then, the publication causes a move of just around ten pips.
On Friday, the US Retail Sales data is capable of causing a slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The EUR/USD has moved from 7.6 to 19.7 pips on the release.
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EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair consolidated around the weekly S1 at 1.1748. During today's morning, the pair dropped to the Fibo 61.80% at 1.1707.If the given support holds, it is likely that the exchange rate could reverse north in the short run. In this case it is unlikely that the rate could exceed the weekly PP located at 1.1790 due to the large number of resistance levels from 1.1748 to 1.1790.
Meanwhile, note that the currency pair is being approached by the 55-hour moving average. Thus, some downside potential could continue to prevail in the market.
Hourly Chart
On the daily candle chart, it could be observed that the rate was ignoring the 55-day simple moving average. It initially failed to keep the rate down and afterwards did not provide support.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, on the Swiss Foreign Exchange trader open positions were bearish, as 57% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 56% to buy the pair.