EUR/USD traders remain short

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

On Wednesday, the EUR/USD was about to test the resistance levels near 1.1170.

Meanwhile, the currency exchange rate was expecting the Federal Reserve's Open Markets Committee's Meeting Minutes, which were set to be released at 18:00 GMT.

One can watch the preview of the event by clicking here.

Latest Fundamental Event

The European Common currency traded sideways against the US Dollar, following the US Retail Sales data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate lost 6 pips or 0.06% right after the release. The Euro continued trading at the 1.1185 level against the Greenback.

Census Bureau released the US Core Retail Sales data, which came out worse-than-expected of 0.1% compared with forecast 0.7%.

According to analysts, the US Retail Sales dropped unexpectedly due to the decreased demand for automobiles and building materials.




Notable events start on Wednesday

Late on Wednesday, the top event of the month will occur. The US FOMC Meeting Minutes will be released at 18:00 GMT. On the EUR/USD it has caused moves from 10.2 to 29.1 pips since October 2018.

On Thursday, data from the European Union will come. The French and German Manufacturing and Services Purchasing Managers Index will be published. The data will be released at 07:15 and 07:30 GMT.

The German data is the top to watch of the two, as it has caused moves from 6.5 to 38.8 pips on the EUR/USD.

The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.

EUR/USD hourly chart's review

On Wednesday morning, the EUR/USD traded below the 1.1170 level.

In general, the rate was expected to decline in the near term future. Namely, the currency exchange rate was set to meet with the resistance of the 100-hour simple moving average and a previously broken trend line, which began to provide resistance near 1.1165 during midnight.

These resistance levels should cause a decline, which would decline as low as 1.1120. Down to that level there are no other technical support levels.

On the other hand, high volatility and breaking of technical charts could be caused by the US Federal Reserve's Federal Open Markets Committee Meeting Minutes publication at 18:00 GMT. 

Hourly Chart



On the daily candle chart, it could be seen that the resistance of the 55-day simple moving average has been left far above the rate.

Meanwhile, note that on the daily candle chart the lower trend line of a dominant pattern was located near the 1.1100 level.

Daily chart

Swiss traders short EUR/USD

Since Tuesday, on the Swiss Foreign Exchange of the total open EUR/USD position volume 69% was in short positions.

Traders had not closed their short positions during the sharp bounce upwards.

Meanwhile, trader set up pending orders in the 100-pip range were no longer bearish. Namely, 55% of all orders were to sell on Tuesday, and on Wednesday morning only 51% of orders were set to sell.

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