During Friday morning, the EUR/USD currency pair dropped below the 1.1120 level.
Given that the pair is pressured by 55-, 100- and 200-hour moving averages, it is likely that some downside potential could prevail.
Economic Calendar Analysis
Throughout the next week releases from the European Union will be published.
On Thursday, the European Central Bank will announce its Main Refinancing Rate at 12:45 GMT. Also, the Monetary Policy Statement will be published.
On Friday, the German Flash Manufacturing and Services PMIs survey results will be published at 8:30 GMT.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 20.01-24.01 Event Historical Reactions
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair declined to the 1.1130 level. During today's morning, the pair surpassed the given level.Note that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located circa 1.1140. Thus, it is likely that some downside potential could prevail in the market.
Note that the currency pair could gain support of the lower boundary of the medium-term ascending channel at 1.1110. However, if the given trend does not hold, it is likely that the pair could go below 1.1100.
Hourly Chart
On the daily candle chart, the pair has support. It is kept up by the 55-day simple moving average and the lower trend line of the last five month surge.
It appears that the hourly and daily candle charts contradict one another. Due to that reason a squeeze between support and resistance levels is expected.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, 62% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, set up pending orders were bearish, as 67% of orders in the 100-pip range were to sell and 33% were to buy.