The following decline found support in the 1.1840 mark, which was supported by the 55-hour simple moving average. It was expected that the SMA would push the rate into another test of the 1.1880 mark.
Economic Calendar Analysis
Data releases start on Thursday. On that day the weekly US Unemployment Claims will be out at 12:30 GMT. The EUR/USD has moved from 7.4 to 11.3 pips on the announcement.
On Friday, starting from 07:15 GMT, the Markit Institute will be releasing Flash Services and Manufacturing Purchasing Managers Indices.
The biggest move is most likely going to occur on the release of the French and German PMIs at 07:15 GMT and 07:30 GMT.
The French PMIs have been causing moves from 10.00 to 30.5 pips. Meanwhile, German PMIs cause moves from 11.3 to 17.5 pips.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
In the near term future, the rate was expected to approach the resistance of the 1.1880 level and the weekly R2 simple pivot point. The rate should be pushed into this level by the 55-hour simple moving averages.In the case of the rate breaking the resistance of the 1.1880 mark, the pair would aim at the pivot points that are located at 1.1941 and 1.1951. However, the 1.1900 round exchange rate level could provide psychological resistance.
On the other hand, the 55-hour simple moving average could fail to push the rate through the 1.1880 level. In this case, the pair could decline as low as the 1.1800 mark. The zone from 1.1800 to 1.1775 had four technical levels located, which all could provide support.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55-day simple moving average and left it behind at 1.1800.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 59% of open position volume was in short positions.
On Wednesday, the sentiment changed, as 58% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 59% to sell the pair.