During Thursday morning, the pair was testing the resistance formed by the 55- and 100-hour SMAs. If the given resistance holds, it is likely that a reversal south could occur.
Economic Calendar Analysis
In regards to the EUR/USD during this week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
Today, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below ten pips. There were exceptions in May and June, when the EUR/USD moved respectively 11.2 and 22.2 pips.
Take a look at all of the historical reaction tables by clicking on the link below.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair declined to the 1.1220 level. During today's morning, the pair was trading at 1.1240.It is likely that the exchange rate could remain under pressure of the 55– and 100-hour SMAs near 1.1270. Thus, it is likely that some downside potential could prevail in the market.
Meanwhile, note that the rate could gain support from the Fibo 38.20% at 1.1200. If the given level holds, it is likely that the pair could consolidate. Otherwise, it is likely that the pair could re-test the lower line of a newly revealed falling wedge pattern circa 1.1180.
Hourly Chart
On the daily candle chart, since June 5, the rate has been consolidating by trading sideways between monthly simple pivot points.
Daily chart
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Traders stick to short positions
On Wednesday, on the Swiss Foreign Exchange 74% of all EUR/USD open position volume was in short positions.
During Thursday morning hours, the sentiment was 75% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were almost neutral, as 51% of orders were to buy and 49% of orders were set to sell.