Yesterday, the EUR/USD currency pair declined to the lower boundary of the short-term ascending channel at 1.1284.
During today's morning, the pair was testing the given channel. From a theoretical perspective, a reversal north could occur soon.
The European Common Currency appreciated against the US Dollar, following the US CPI data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate gained 16 pips or 0.14% right after the release. The Euro continued trading at the 1.1335 level against the Greenback.
Bureau of Labor Statistics released the US Core CPI data, which came out worse-than-expected of 0.1% compared with forecast 0.2%.
According to the official release: "The food index rose 0.3 percent in May after declining in April, with the food index accounting for nearly half of the May seasonally adjusted all items monthly increase. The energy index fell 0.6 percent in May, with the gasoline index falling 0.5 percent and the indexes for electricity and natural gas also declining in May. The index for all items less food and energy increased 0.1 percent for the fourth consecutive month. The indexes for shelter, medical care, airline fares, education, household furnishings and operations, and new vehicles all rose in May. The indexes for used cars and trucks, recreation, and motor vehicle insurance were among those that declined over the month."
US Retail Sales data could impact EUR/USD
The week will end with the US Retail Sales data release at 12:30 GMT. Note, that previous data release caused a nine-pip move.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair declined to the lower boundary of the short-term ascending channel located circa 1.1280. During today's morning, the pair was testing the given line.From a theoretical perspective, it is expected, that the exchange rate could reverse north in the nearest future. Note, that the rate has to surpass the resistance level formed by the 55– and 100-hour SMAs, currently located circa 1.1312.
On the other hand, the pair could trade sideways between the given resistance, as well the support level formed by the 200-hour SMA and the weekly PP at the 1.1281 mark.
Hourly Chart
As apparent on the chart, the EUR/USD exchange rate remains to be under pressure of the monthly R2 at 1.1338.
Note, that the rate is supported by the 100-period SMA and the weekly PP at 1.1281, thus, it is unlikely, that some downside potential could prevail. It is likely, that the pair could trade sideways in the short run.
Daily chart
On Thursday, 74% of open all positions on the Swiss Foreign Exchange were short.
Trader set up pending orders in 100-pip range around the pair were also short , as 55% of orders were to buy.
Previously, the orders were neutral.