The EUR/USD has reached the targeted support of the weekly S1 at the 1.1390 level. Moreover, the decline was expected to continue on Thursday morning.
The rate was making attempts to decline even further, as it had made various attempts to break free from the weekly pivot point and continue its way downwards to the 1.1330 level.
The European Single Currency appreciated against the US Dollar, following the US CPI and Core CPI release on Friday at 13:30 GMT. The EUR/USD exchange currency rate gained 9 pips or 0.08% during a minute, right after the release. The European Single Currency continued trading at the 1.1455 area against the US Dollar.
Note that the US consumer prices dropped for the first time in nine months. The Bureau of Labor Statistics released US CPI data in line with expectations of negative 0.01%. Note, that the US Core CPI was released at the same time with the US CPI.
The U.S. Bureau of Labor Statistics reported on Friday, "The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December on a seasonally adjusted basis after being unchanged in November,"
Empty trading session for release traders
Besides a couple of speeches by central bankers, which are not expected to reveal anything, there are no notable events scheduled for Thursday.
On Friday, two data releases will be covered by Dukascopy Analytics.
At 09:30 GMT the UK Retail Sales will be published. Around 10-40 base point move can be expected during the event.
The biggest event of the will occur at 13:30. The Canadian CPI will be published. On the USD/CAD there are 30 pip moves even when it hits the forecast. When the data is different there have been 40-85 pip moves.
EUR/USD daily review
The hourly chart shows how the EUR/USD is actually slowly continuing its decline. Namely, the rate had reached below the 1.1380 level during the morning hours of Thursday.In general, the rate is expected to decline, as soon as the resistance of the 55-hour simple moving average approaches the pair from the north.
On the other hand, the rate might trade sideways or even pierce the combined resistance of the monthly pivot point and the 55-hour SMA at the 1.1410 level. Although, this scenario is less likely to occur.
Hourly Chart
On the daily chart the pair has reached the support of the 55-day simple moving average, which is strengthening the weekly S1 at 1.1390.
Although, the SMA was being pierced just like the rest of the previously described support levels. In general, the rate on the daily chart was set to reach for the support levels just below the 1.1350 level.
Daily chart
Traders of the Swiss Foreign Exchange are 64% short on the EUR/USD. Gradually they have been closing short positions, as the sentiment was previously more bearish.
Meanwhile, trader pending orders in the 100-pip range were no longer neutral, as 55% of orders were set to buy.
The buy orders indicate that the traders have their stop losses and take profits close by. Most likely just above the 1.1400 level.