The volatility of the EUR/USD increased in the second part of Monday's London trading hours. The currency exchange rate surged, as various fundamental news decreased the value of the US Dollar.
Among these was a trade dispute between the EU and the US, Cuban retailers moving away from using the USD, tariffs on Latin American imports and lower than forecast US ISM Manufacturing PMI survey results. In the meantime, there was already an increase of volatility of Friday, about which a report has been prepared. US Dollar Appreciated 0.43%
During Friday, November 29, the US Dollar depreciated 47 pips or 0.43% against the European Common Currency.
According to news, the Greenback dropped as the US released regulatory guidelines for the US telecom networks to protect them from national security threats.
However, it is likely that the given decline occurred due to the news that more NATO allies agreed to spend 2% of their economic output on defence by 2024. Defence spending are expected to increase by a cumulative $400B.
Economic Calendar Analysis
On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
The ADP Employment Change can be ignored. It has created reactions on the EUR/USD below ten pips. In general, a move below ten pips on a five minute time frame is seen as normal.
In the meantime, the ISM Non-Manufacturing PMI since June 2019 has caused moves from 9.7 to 36.5 pips.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 14.5 to 41.4 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair skyrocketed to the 1.1080 level. During today's morning, the pair was consolidating at the level.From the one hand, the exchange rate could continue to extend gains in the short term. In this case, the rate would have to surpass the resistance level –the weekly R3 at 1.1093.
From the other hand, a reversal south could occur in the nearest future. Note that the currency pair would have to surpass the support level formed by the weekly R2 and the monthly PP at 1.1060.
If the given support and resistance levels hold, it is likely that the Euro could continue to consolidate against the Greenback in the short run.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55-day simple moving average at 1.1041 and has pierced the 100-day SMA at 1.1074.
If the 100-day SMA fails to keep the rate down, then the next technical resistance to the pair on the daily candle chart would be located at the 1.1166 level. At that level on Tuesday, the 200-day simple moving average was located at.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 68% of open EUR/USD position volume was in short positions.
The sentiment was 64% short on Monday.
Meanwhile, pending trade orders were bearish, as 70% of orders in the 100-pip range were to sell and 30% were to buy.
Previously, the orders were 58% to buy.