The break out of the rising wedge on Wednesday quickly reached the 1.0860 mark, where it found support. In the meantime, the rate traded with high volatility, as it retraced back to 1.0940 before resuming its decline.
On Thursday, the rate traded in limbo around the 1.0880 level.
Economic Calendar Analysis
On Thursday, all attention is expected to be set on the weekly US Unemployment Claims. During the last weeks this announcement has been revealing shocking data, as during the two week period almost ten million US workers claimed unemployment benefits. The unemployment claims were previously ignored as they had stopped causing market reactions.
EUR/USD hourly chart's review
On the hourly candle chart it can be observed that the rate faces the resistance of the 200-hour simple moving average at the 1.0890 level. In addition, the weekly simple pivot point was located together with a 23.60% Fibonacci retracement level at the 1.0890 mark.In the meantime, the pair had no technical support close by. Due to that reason the scenario of an upcoming decline is favoured. In the case of a decline, the rate would test the support of the 1.0860 level, which provided support on Wednesday.
On the other hand, the pair could break the 200-hour SMA and surge up to the combination of the 55 and 100-hour SMAs, which were located near 1.0930.
Hourly Chart
On the daily candle chart, the rate bounced off the resistance of the 55-day simple moving average, which is located at the 1.0970 level.
Daily chart
Read More: Technical Analysis
Short sentiment continued to decline
On Tuesday, 75% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Wednesday's trading, 73% of volume was short, and, on Thursday, 71% of volume was short.
Most traders were gaining from the pairs decline, as it had declined below Tuesday's exchange levels. Some had positions in the green and other had already taken profits.