On Wednesday morning, the EUR/USD ended the surge, which was occurring for a week. Namely, it broke the support of the ascending pattern and the 55-hour simple moving average.
The rate had fulfilled the second of the previously speculated scenarios by declining down to the 100-hour simple moving average, which on Wednesday was located near the 1.1350 level.
In general, the rate was expected to get squeezed in between the 100-hour SMA from below and the 55-hour SMA from above.
The European Common Currency appreciated against the US Dollar, following the French Flash Services and Manufacturing PMIs data release on Friday at 07:15 GMT. The EUR/USD exchange currency rate gained 19 pips or 0.17% right after the release. The Euro continued trading at the 1.1315 level against the Greenback.
Markit released the French Flash Services PMI data, which came out better-than expected of 53.1 compared with forecasted 51.6. The French Flash Manufacturing PMI data also came out better-than expected of 52.0 compared with forecast of 51.0.
Surprisingly, the Euro appreciated only 13 pips or 0.11% against the US Dollar, following the German Flash Manufacturing and Services PMIs data release on Friday at 07:30 GMT. The given data also beat expectations.
Minor events during the week
This week there will be some minor events that might cause notable moves.
The data that is noted by the financial markets as important starts on Wednesday. On that day, the US Durable Goods Orders and Core Durable Goods Orders will be published at 12:30 GMT.
This event since February has caused moves from 5.1 to 18.0 pips. Moreover, the 18 pip was an anomaly, as the rest of the events have caused from 5.1 to 9.0 pips.
On Thursday, the US Final GDP will be published at 12:30 GMT. This is the least important GDP of the three quarterly publications of the US GDP. Since March 2018 this event has caused moves from 7.6 pips to 26.4 pips.
The full review of all of the notable events is available in video on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
The surge has ended, the EUR/USD on Wednesday morning was located at 1.1360 and was about to get squeezed in between the 55 and 100-hour simple moving average.If the rate breaks out from the squeeze to the upside, it will once more test the resistance of the monthly pivot point at 1.1410.
If the breakout occurs down, a different monthly pivot point would provide support at 1.1337.
Hourly Chart
On the daily candle chart, the rate has bounced off the combined resistance of a monthly pivot point at 1.1412 and the upper trend line of the large scale ascending channel pattern.
Meanwhile, note that the 200-day simple moving average also provided support to the stopping of the rate's decline. Namely, the SMA was supporting the rate at 1.1350.
Daily chart
Since Monday, most open EUR/USD position volume was in short positions. Namely, 73% of open volume on the Swiss Foreign Exchange was in short positions.
It was explained by long traders taking profits and opening short positions in the expectations of a retracement down.
These positions should have gained minor profits on Wednesday.
Meanwhile, trader set up pending orders in 100-pip range around the pair were in the neutral zone, as 53% of all orders were set to buy and 47% were to sell.