On Wednesday, the United States Bureau of Economic Analysis has just published the country's quarterly Advance GDP data. The markets expected that the GDP would have increased by 2.0% during the quarter. The data came in below expectations, as GDP had increased by 1.1%. The lower data confirms views of an upcoming recession. A potential recession would cause a run to safety in the financial markets that would strengthen the US Dollar. Due to this reason, the USD spiked 0.30% on the news.
Economic Calendar Analysis
The top event of the week will be the US Core PCE Price Index release at 12:30 GMT. The US Federal Reserve looks at this inflation indicator for future guidance of their monetary policy.
EUR/USD hourly chart
In regards to the near term future, the pair might resume its surge and make another attempt at passing above the 1.1100 mark. A move above 1.1100 might test the weekly R3 simple pivot point at 1.1112. Higher above, there is no short term technical resistance.A potential decline of the currency pair is expected to look for support in the weekly R1 at 1.1021 and the 50 and 100-hour simple moving averages. Below these levels note the 1.1000 mark and the 200-hour simple moving average.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair appears to be surging in a channel up pattern that is aimed at the early 2022 low and high level zone at 1.1130/1.1190.The most recent data releases have not broken the channel.
Daily chart
Read More: Technical Analysis
Traders are shorting
On Thursday trader open positions were bearish, as 67% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 69% to buy the Euro against the USD.