During Friday morning, the EUR/USD currency pair was testing the support formed by the 55- and 200-hour SMAs at 1.1030.
If the given support holds, it is likely that some upside potential could prevail in the short term. Otherwise, the Euro could decline against the Greenback.
US employment data set on focus
Today, the US employment data will be published. The event will have three numbers being revealed – the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
Due to each of the numbers impacting the rate differently by pushing the value of the USD up or down and with a different strength, the event has a wide range. Namely, since April the EUR/USD has moved from 13.3 to 48 pips due to the US labour data.
Next week, there are couple events that could have an impact on the EUR/USD exchange rate.
On Wednesday, September 11, the US Producer Price Index data will be published at 12:30 GMT.
On Thursday, September 12, the US Consumer Price Index data will be released at 12:30 GMT. Previous release caused a 23-pip move.
On September 12, the ECB Monetary Policy Statement will be published at 11:45 GMT.
Next week will end with the US Retail Sales release at 12:30 GMT on Friday, September 13. Last release caused almost a fifteen-pip move.
EUR/USD hourly chart's review
On Thursday, the EUR/USD tested the upper boundary of the falling wedge pattern at 1.1087. During today's morning, the pair was testing the support formed by the 55– and 200-hour SMAs, as well the weekly PP at 1.1030.If the given support holds, it is likely, that the exchange rate could reverse north to re-test the upper pattern line. If the given wedge does not hold, the rate could reach the 1.1100.
However, note that the pair has to surpass the monthly PP at the 1.1069 mark. Thus, if the given support and resistance hold, it is likely, that the Euro could consolidate against the Greenback. If the given support does not hold, the rate could decline to the 100-hour SMA at 1.1000.
Hourly Chart
On the daily candle chart it can be seen that the EUR/USD exchange rate tested the support provided the weekly and monthly S1s located circa 1.0900.
The rate could test the monthly PP at 1.1069 in the nearest future.
Generally, it is unlikely that the rate could exceed the Fibonacci 61.80% retracement at 1.1203 in the medium term.
Daily chart
Read More: Technical Analysis
Traders go short
On Friday, 58% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were slightly bearish, as 55% of orders in 100 pips range around the current rate were to sell and 45% were to buy.