The surge of the EUR/USD reached up to the 1.1034 level, from which it reversed and declined. The decline had found support at 1.1005, from where a consolidation began.
In general, the rate could trade in any direction until the end of this week's trading.Although, a new channel up pattern was spotted. The pattern could help traders make decisions.
Economic Calendar Analysis
Next week only one data release might impact the EUR/USD currency exchange rate. Although it is a minor one.
On Wednesday, the US Retail Sales and Core Retail Sales data will be published at 12:30 GMT. Since May 2019, the rate has caused moves on the EUR/USD charts from 9.0 to 24.3 base points.
Meanwhile, take into account that next week there will be other events, which are expected to cause larger reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
EUR/USD hourly chart's review
On Friday morning, the rate could go any direction. Meanwhile, an ascending pattern has been added, which helps in understanding the situation.If the EUR/USD declines, it would look for support in the lower trend line of the pattern at the 1.1000 level. In addition, take into account that the 1.1000 mark provides psychological support. Moreover, the 55-hour simple moving average was approaching this level.
Meanwhile, the pair has room to trade sideways. It can do that in the range between 1.1010 and 1.1020 until it reaches the lower trend line of the pattern and the 55-hour SMA.
If the rate surges, it would first meet with the resistance of the weekly first resistance level of the simple pivot points at 1.1028. In the case of this level failing to keep the pair down, as it occurred on Thursday, the pair would attempt to reach the monthly pivot point at 1.1045.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the long term descending channel pattern, which guided the rate since the end of June.
Meanwhile, the 55-day simple moving average had not reached the rate during this week, as its decline slowed down. Although, take into account that on Friday the SMA began to strengthen the resistance of the monthly R1 pivot point.
Daily chart
Read More: Technical Analysis
Traders sell the EUR/USD
On Thursday, 65% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the number increased to 67%.
Meanwhile, pending trade orders were mostly bearish, as 80% of orders in the 100-pip range were set to sell and 20% were to buy.
Previously, 78% of orders were to sell the EUR against the USD.