The psychological resistance of the 1.1280 level managed to hold its ground and force the EUR/USD into a retracement down to the 1.1250 level.
In general, from the hourly candle chart it appears that round levels have more impact on the currency exchange rate than technical levels like pivot points and simple moving averages.
Although, note that on Friday morning a strong support was forming at the 1.1255 level, as the 55 and 200-hour simple moving averages were about to meet.
The European Common Currency traded sideways against the US Dollar, following the US FOMC Meeting Minutes data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate gained 2 pips or 0.02% right after the release. The Euro continued trading at the 1.1254 level against the Greenback.
The Federal Reserve released the US FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
According to the official release: "Investors' concerns about downside risks to the economic outlook weighed on financial markets over the intermeeting period. Market participants cited negative news about international trade tensions and, to a lesser extent, soft U.S. and foreign economic data as factors that contributed to these developments. Nominal Treasury yields posted notable declines and the expected path of policy shifted down considerably over the period. Equity prices declined, on net, and corporate bond spreads widened. However, financing conditions for businesses and households generally remained supportive of economic growth."
US data ends the week
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 5.3 to 40.4 pips.
Although, note that the 40.4 pip move was actually caused by other announcements being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
EUR/USD hourly chart's review
On Friday morning, the EUR/USD was located above the combined resistance of the 55 and 200-hour simple moving averages at 1.1255.The rate was expected to be pushed higher by these levels into the resistance of the pivot point that was located at the 1.1269 level. If this level gets broken, the 1.1280 level will once more provide resistance.
On the other hand, the rate might drop below the two simple moving averages and reach for the 1.1240 level, where it would find support in a previously broken trend line and a 100-hour SMA.
Hourly Chart
On the daily candle chart, the pair remains in an ascending channel pattern and should reach for its lower trend line in the zone around 1.1200.
In the meantime, regarding the near term future, note that the 55 and 100-day simple moving averages were located close by to the currency exchange rate.
Daily chart
On the Swiss Foreign Exchange on Friday 73% of trader open EUR/USD position volume was in short positions. The sentiment was 72% short on Thursday.
Meanwhile, today, trader set up pending orders in 100-pip range around the pair were almost neutral, as 54% of all orders were set to sell and 46% were to buy.
The pending orders have been bouncing around from being slightly bearish to slightly bullish during the last third trading sessions.