Economic Calendar Analysis
On Thursday, the Institute for Supply Management will publish the Seervices sector Purchasing Managers Index at 14:00 GMT. Large deviation from the forecast could cause a USD move
The top event of the week is scheduled for Friday. At 12:30 GMT, the US monthly employment data sets will be published. The release consists of the Average Hourly Earnings change, the Non-Farm Employment Change and the Unemployment Rate.
EUR/USD hourly chart analysis
A recovery above 1.1085 is set to face the weekly S1 simple pivot point at 1.1092 and the 1.1100 mark together with the 50-hour simple moving average. Higher above, note the 1.1120 level and the descending 100 and 200-hour simple moving average. If these levels fail, the rate would have to break the weekly simple pivot point at 1.1150, before approaching the 1.1200 mark.On the other hand, a decline would have the support of the 1.1040/1.1065 zone. If this range does not hold, then the pair would look for support in the weekly S2 simple pivot point at 1.1022, the 1.1000 mark and the weekly S3 simple pivot point at 1.0961.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the has bounced of the 1.1130/1.1200 zone. The event has been followed by a passing below the 1.1100 level and the summer channel up pattern. These two factors indicate that a broader decline might occur.However, support has been found in the combination of the 50-day simple moving averges and the 1.1025/1.1050 range.
Daily chart
Read More: Technical Analysis
Traders cut short positions
This week, on Monday, traders were bearish, as 74% of volume was in short positions.
Meanwhile, pending orders in the 100-base point range around the pair were 55% to buy.
On Wednesday, traders were 67% short and orders were 60% to sell.
It appears that the traders that added to short positions have taken profits from the drop.