The EUR/USD has declined below the support of the historical low level of 1.0930. Although, the event did not result in a sharp decline, as support was provided by the 1.0910 mark.
On Friday morning, the pair was consolidating by trading sideways, which was considered normal, as the rate has declined sharply since September 25.
Week Ends With Insignificant Data
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the EUR/USD moved from 5.4 to 10.9 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
Meanwhile, take into account that all of the historical reaction data tables to all notable data releases next week have been published in a separate publication. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
EUR/USD hourly chart's review
On Friday morning, the EUR/USD was trading sideways between the 1.0910 and 1.0930 levelsIn theory the rate was expected to continue its decline, as soon as it consolidates and the oversold pressure is gone. It would most likely be signalled by the approaching of the hourly simple moving averages. Namely, the 55-hour SMA, shown in green, would push the rate down.
Note that the consolidation could last as long as next Wednesday, as the rate has no technical reason to decline and it faces resistance levels at 1.0930 and 1.0937.
Hourly Chart
On the daily candle chart, the rate's decline was consistent with the long term descending channel pattern. The rate has clearly broken off the upper trend line of the pattern.
The rate should continue to decline in the pattern until the middle of October.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Thursday morning, 62% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bullish, as 66% of orders in the 100-pip range were set to buy and 34% were to sell. The orders were 63% to buy on Thursday.
In general, traders are sitting on short positions with take profits and stop loss orders close by.