In the meantime, the rate has surged too sharply in the recent past, which indicates that a retracement back or sideways trading could occur.
Economic Calendar Analysis
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The EUR/USD has moved from 15.7 to 28.9 pips on the announcement.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
At mid-day on Thursday, the rate was expected to reach for the weekly R3 simple pivot point, which was located at the 1.2185 level.However, the rate has surged more than 1.80% during the last three trading sessions. This is an out of the ordinary move, which indicates that the pair is overbought. Namely, it should fluctuate sideways or retrace back down.
Hourly Chart
On the daily candle chart, the rate remains overbought, as the closest by daily simple moving average were located at the 1.1800 mark. At that level the 55 and 100-day SMAs were moving sideways.
In the meantime, note that the 2018 high level of 1.2528 is marked on the chart.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 62% of open position volume was in short positions.
On Wednesday, the sentiment was 61% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 68% to sell the pair.