On Thursday, the EUR/USD surged, as it began a recovery that was created by the technical support provided by the 200-hour simple moving average.
By the middle of the day, the rate had touched the 1.1145 level, from which it bounced back down. In general, the rate was expected to retreat back down to the 200-hour SMA before continuing its surge.Economic Calendar Analysis
This week, there is one scheduled event left, which could cause an increase of volatility in the EUR/USD.
On Friday, December 20, the US Final GDP data will be published at 13:30 GMT. The EUR/USD has moved from 5.2 to 26.4 pips on the release since September 2018.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
EUR/USD hourly chart's review
By the middle of Thursday's London trading hours, the EUR/USD had touched the 1.1145 level before retreating back down to the 1.1125 level. At that level it was supported by a pivot point.In general, the rate was expected to trade sideways until the additional support of the 200-hour SMA approaches from below and pushes the pair higher.
On the other hand, the SMA might fail. In that case, the pair would have not technical support as low as the 1.1059 level.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of the 200-day moving average. The rate could gain support of the 55- and 100-day SMAs and breach the given resistance in the near future.
In regards to the longer term future, the rate could pass the 1.1200 level and surge up to the 1.1300 mark by the end of January.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Thursday, 72% of open EUR/USD position volume was in short positions. The sentiment was 74% short on Wednesday.
Meanwhile, pending trade orders were bearish, as 57% of orders in the 100-pip range were to sell and 43% were to buy.