EUR/USD trades near previous levels

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

By the middle of Thursday's trading session the EUR/USD had traded in the previous range between 1.1320 and 1.1360.

The most notable update is that the EUR/USD had passed below the support of the 55-hour simple moving average. The SMA no longer had the needed strength to keep the rate up.

Latest Fundamental Event

The European Single Currency appreciated against the US Dollar, following the US Retail Sales data released on Thursday at 13:30 GMT. 

The EUR/USD exchange currency rate gained 19 pips or 0.17% during a minute, right after the release. The European single currency continued trading at the 1.1295 area against the US Dollar.



The Census Bureau released US Retail Sales data that came out lower than expected of negative 1.2%, compare to forecasted 0.1%. Note, that the US Core Retail Sales was released at the same time with the US Retail Sales.

"The equity meltdown? Maybe there is something in that perhaps, as there was from the apparent inability of seasonal adjustment factors to cope with the now-pervasive bring forward of (on line) sales into November from Black Friday and Cyber Monday. Perhaps revisions are pending," says David de Garis, a director and senior economist at National Australia Bank.


Data still expected this week

On Thursday, EUR traders will pay attention to the Markit released European Services and Manufacturing PMIs. The German release at 08:30 GMT is the most important.

Later on during the same day the US Durable Goods Orders and Core Durable Goods Orders will be published.

The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.

All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.

For more information watch the weekly Calendar Analysis stream recording.

EUR/USD hourly chart's review

The hourly chart's short term forecast for the EUR/USD I mainly concentrating on the rates fluctuations around the pivot point at 1.1345.

Namely, it can be observed that the pair continues to fluctuate around this level for the third consecutive trading session. Some false break outs and drops have occurred in the meantime.

The reason for that is the fundamental information coming out from the recent Brexit negotiations and the macroeconomic data on the economic calendars. For now, technical analysis is rather limited.

Hourly Chart



On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1400 level together with the previously mentioned pivot point.

It is most likely that this level will provide strong resistance to the surge of the EUR/USD.

Meanwhile, on a larger scale from a technical perspective the recent surge is seen as a consolidation of a decline. The consolidation is occurring by retracing back upwards.

Daily chart

Short sentiment dominates

The total volume of open positions on the Swiss Foreign Exchange was 63% short since Wednesday.

Meanwhile, the trader set up buy and sell orders in a 100 pip range around the rate were neutral on Thursday.

It is assumed by seeing that the pending orders are almost neutral that the current short positions don't have close by stop losses and take profits.

They are further away, as it is in the case of longer term trade set ups.

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