On Thursday morning, the EUR/USD met with the resistance of the 55-hour simple moving average at 1.1084. It occurred in the aftermath of a bounce off from the support of the 1.1060 level.
In general, if the resistance of the SMA fails, the rate would reach for a pivot point at 1.1100. On the other hand, in the case of a decline, support could be provided by the pivot points at 1.1071 and 1.1037.Economic Calendar Analysis
There are no more data releases scheduled for this week, which could impact the EUR/USD currency exchange rate.
Meanwhile, take into account that the week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication. There are still events to look at on other pairs.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair tried to surpass the 1.1060 level. During today's morning, the pair was trading at the 1.1075 mark.Note that the exchange rate is pressured by the 55-hour moving average, currently located at 1.1084. Thus, it is likely that some downside potential could prevail in the market. A possible downside target is the weekly S2 at 1.1037.
However, if the given resistance does not hold, it is likely that the Euro could appreciate against the US Dollar within the following trading session. In this case the rate would have to surpass the resistance cluster formed by the 100- and 200-hour SMAs, as well the weekly S1 in the 1.1102/1.1116 area.
Hourly Chart
On the daily candle chart, the pair has additional support provided by the 55-day simple moving average, which on Thursday was located at the 1.1044 level.
Daily chart
On Thursday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had been near this level since Monday.
Meanwhile, pending trade orders were to mostly to buy, as 80% of orders in the 100-pip range were to buy and 20% were to sell. Previously, the orders were 78% bullish.
The situation has not changed since Wednesday. Traders have gained profits from the decline of the pair, but have not booked them. In the meantime, the pending orders indicate that stop losses and take profits of the short positions are close by.
Moreover, some intend to open long positions in the case of a surge.