During Friday morning, the EUR/USD currency pair was testing the resistance level - the monthly R1 at 1.1138.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future.Economic Calendar Analysis
This week, there are no scheduled events left, which could cause an increase of volatility in the EUR/USD pair.
Next week, there are only three events that could affect the EUR/USD pair.
On Tuesday, December 31, the US CB Consumer Confidence will be published at 15:00 GMT.
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.
At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 23.12-27.12 Event Historical Reactions
EUR/USD hourly chart's review
Recently, the EUR/USD currency pair exceeded the 1.1100 level. During Friday morning, the pair skyrocketed to the monthly R1 at 1.1138.If the given resistance level does not hold, it is likely that the exchange rate could continue to extend gains in the short run. Note that the rate would have to surpass the weekly R1 at 1.1149.
However, if the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case the currency pair could gain support of the weekly PP and the 200-hour SMA at 1.1107.
Hourly Chart
On the daily candle chart, the rate failed to pass the resistance of the 200-day simple moving average, which was located near 1.1150.
In the meantime, take into account that the support of the 55 and 100-day simple moving averages circa 1.1080 could stop pair decline to the 1.1000 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, 68% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were strongly bearish, as 78% of orders in the 100-pip range were to sell and 22% were to buy.