At mid-day on Thursday, the rate was retreating to the combined support of the weekly R1 simple pivot point at 1.1308, the 55-hour SMA at 1.1305 and the 100-hour SMA at 1.1292.
Economic Calendar Analysis
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
It is likely that some downside potential could prevail, and the exchange rate could re-test the lower line of the short-term ascending channel circa 1.1290.Meanwhile, note that the rate could gain support from the weekly R1 and the 55-hour SMA at 1.1308. If the given level holds, a reversal north could occur, and the pair could re-test the predetermined resistance.
Hourly Chart
On the daily candle chart, the rate could gain additional resistance from the trend line that connects the March and June high levels.
In the meantime, the daily simple moving averages indicate that the pair is overbought, as they are located below the 1.1100 mark.
Daily chart
Read More: Technical Analysis
Short sentiment grows
Since Tuesday, on the Swiss Foreign Exchange 62% of all EUR/USD open position volume was in short positions.
On Thursday, the sentiment increased, as 67% of open volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 54% to buy.
Orders were 61% to buy on Wednesday