German PMI data caused a drop of the EUR/USD, which passed most technical support levels.
On Friday, the currency exchange rate was recovering after the drop.
The European Common Currency traded sideways against the US Dollar, following the US Retail Sales data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate lost 9 pips or 0.08% right after the release. The Euro continued trading at the 1.1245 level against the US Dollar.
Census Bureau released the US Core Retail Sales data that came out better-than-expected of 1.2% compared with forecast 0.7%.
According to experts, the US retail sales showed the fastest growth since late 2017. In March, sales for automobiles, petrol, furniture and clothing surged. This advance might signal that consumers tend to spend more due to the healthy job market.
No more data this week
There will be no more significant data being published this week. Data releases will resume next week.First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.
The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On Friday, after the large drop caused by the German PMI data on Wednesday, the EUR/USD was recovering.The pair's recovery was expected to continue, as the rate had no technical resistance levels close by. Namely, the simple moving averages were still located above the 1.1270 level during the morning hours.
On the other hand, the rate might consolidate after the decline by trading sideways not surging up.
Hourly Chart
As it was previously stated throughout the week, main moves were caused by the 55-day SMA. On Thursday, the SMA together with the fundamental data pushed the GBP/USD down.
In regards to the future, there is nothing to add. The 55-day SMA will come down and continue to provide resistance to the currency pair.
Daily chart
On the Swiss Foreign Exchange rate 75% of the total open position volume was in short positions.
As 71% of volume was in short positions on Thursday, we congratulate the traders, which profited from the drop.
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 55% of all orders were set to sell.