EUR/USD passes dominant support

Note: This section contains information in English only.
Source: Dukascopy Bank SA

The EUR/USD is trading with high volatility on Thursday and Friday. During the period of high volatility the pair has broken the lower trend line of a dominant ascending pattern on the hourly chart.

Meanwhile, a full review of the daily chart has been conducted, as the lower trend line of a previously hypothetical and kept secret pattern at Dukascopy Analytics has been reconfirmed.

Latest Fundamental Event

The European Single Currency appreciated against the US Dollar, following the EU Main Refinancing Rate release on Thursday at 12:44 GMT. The EUR/USD exchange currency rate gained 11 pips or 0.10% during a minute, right after the release. The European Single Currency continue trading at the 1.1340 area against the US Dollar.

The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.

"The risks surrounding the euro area growth outlook have moved to the downside on account of the persistence of uncertainties," Draghi told a news conference, citing trade and geopolitical threats and emerging market volatility. "The near-term growth momentum is likely to be weaker than previously expected."


Week has ended

The week's macroeconomic data releases are over. Meanwhile take into account that there will be no data releases that are worth covering also on Monday.

Instead watch the weekly Economic Calendar Analysis stream at 12:00 GMT on Monday. During the stream the whole week's calendar will be laid out to the participants.
More content: Youtube Channel

EUR/USD daily review

During Thursday's Draghi's speech, the European Single Currency depreciated against the US Dollar to pass through the support levels of the monthly S1 and the weekly S1 to end the trading session at the 1.3005 mark. Besides, the chart was thoroughly reviewed and corrected!

In regards to the near-term future, it is expected, that the rate will be retraced by the 55-hour and the 100-hour simple moving averages towards the weekly S2 at 1.1262.

On the other hand, the European Single Currency might break the resistance levels of the SMAs to trade near the weekly pivot point at the 1.1402 mark.

Hourly Chart



On the daily chart note the added observable lower trend line of a massive scale ascending pattern. Zoom out to take a better look at it.

Previously, the pattern was not included, as even during its borders there have been various fundamental changes of both the EUR and the USD. The changes have been of the type that are above all technical analysis.

Although, due to the fact the pattern's lower trend line stopped the recent decline, it was shown to our readers.

Daily chart

Swiss Traders are shorting the pair

Traders continued to be short on EUR/USD despite the volatility, as 54% of open positions were short on Friday.

Meanwhile, trader pending orders in the 100-pip range were still neutral. They were bearish only on Wednesday.

In general, the lack of close by trade orders reveals that most of the open positions are long term. Moreover, as the positions did not change during the increased volatility, it signals that they do not have close by trailing stop losses.

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