In general, the rate was expected to continue to trade sideways until the resistance of the hourly simple moving averages approaches and pushes the rate down.
Economic Calendar Analysis
On Friday, at 13:30 GMT the US will release their employment data. The release will consist of three data sets from the US – Average Earnings Change, Unemployment Rate and Non-Farm Employment Change.
Data tables with the week's event historical reactions have been published. Click on the name of the publication to view it.
Read More: 03.02-07.02 Event Historical Reactions
EUR/USD hourly chart's review
The currency exchange rate is expected to trade sideways until the 55, 100 and 200-hour simple moving averages catch up to it. Most likely, the first one to provide resistance would be the 55-hour SMA, which on Thursday morning was located at the 1.1025 level.In the case of the SMA pushing the rate down, the EUR/USD could look for the support of the monthly S1 pivot point at 1.0984.
On the other hand, the SMA might fail. In that case, the 100-hour SMA should be watched, as it could move lower and provide additional technical resistance.
Hourly Chart
On the daily candle chart, the support of the 1.1000 and historical price action near this level can be observed. The 1.1000 kept the EUR/USD from declining two times in November and at the end of January.
However, it can be pierced, as seen in November. Namely, the rate drops below this level and then rebounds.
Daily chart
Read More: Technical Analysis
Traders gain from decline
Since the middle of Thursday's GMT hours, 58% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders had been short since Monday. Their short positions are most likely in the green.
Meanwhile, set up pending orders were neutral, as 50% of orders in the 100-pip range were to buy and 50% were to sell.