On Thursday morning, the EUR/USD touched a low level at 1.0995. Afterwards, it began a surge, which quickly reached the resistance of the 55-hour simple moving average near 1.1015.
The SMA provided the needed technical resistance to cause a decline, which was expected to reach new low levels. US Consumer Price Index
The European Common Currency traded sideways against the US Dollar, following the US CPI data release on Wednesday at 13:30 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.04% right after the release. The Euro continued trading at the 1.1007 level against the Greenback.
The Bureau of Labor Statistics released the US CPI data, which came out better-than-expected of 0.4% compared with the forecast of 0.3%.
According to the official release: "The index for all items less food and energy rose 0.2 percent in October after increasing 0.1 percent in September. Along with the indexes for medical care and for recreation, the indexes for used cars and trucks, for shelter, and for personal care all rose in October, though the increase in the shelter index was the smallest since October 2013. The apparel index fell in October, as did the indexes for household furnishings and operations, for new vehicles, and for airline fares."
Economic Calendar Analysis
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 5.1 to 14.8 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 13.7 to 24.3 pips.
The week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
EUR/USD hourly chart's review
As it was already mentioned, on Thursday morning the EUR/USD bounced off the resistance of the 55-hour SMA near 1.1015.In general, the rate was expected to once more test the support of the 1.1000 level. If this level is clearly passed, the rate would have no support as low as 1.0967, where a weekly pivot point was located at.
On the other hand, if the 1.1000 holds the rate up, it should trade sideways until the resistance of the 55 and 100-hour simple moving averages pushes it down.
Hourly Chart
On the daily candle chart, the currency exchange rate was trading near the lower trend line of a large scale channel up pattern.
Daily chart
On Thursday, on the Swiss Foreign Exchange 62% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were to mostly to buy, as 77% of orders in the 100-pip range were to buy and 23% were to sell. Previously, the orders were 82% bullish.
During the recent reversal some short positions were closed. However, most traders are still shorting the EUR/USD with close by buy orders.
In addition, some have set up buy to open long position orders in the expectations of a larger retracement back up.