This resulted in the adjustment of the EUR/USD, which had the form of a decline. Eventually, the decline reached below the support levels that were located from 1.1240 to 1.1250.
US Unemployment data
The Euro traded sideways against the US Dollar, following the US ADP Employment data set release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate gained 9 pips or 0.08% after the release. The Euro continued trading at the 1.1260 level against the Greenback after the release.Initial Reaction
Meanwhile, note that there was post reaction until 13:05 GMT. The Euro depreciated 42 pips or 0.37% against the Greenback.
The Bureau of Labor Statistics released the US ADP Unemployment Rate data, which came out better-than-expected of 11.1% compared with the forecast of 12.4%.
Post-Reaction
Economic Calendar Analysis
No notable events are scheduled for Friday.
Next week, notable macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released. In June, it caused a 26.5 pip move on the EUR/USD.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair declined to the 1.1230 level. During today's morning, the pair was testing the given mark.It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.1245 area. In this case the rate could gain support from the Fibo 38.20% at 1.1200.
Meanwhile, it is likely that the currency pair could gain support in the 1.1220 area, it is likely that the Euro could trade sideways against the US Dollar in the nearest future.
Hourly Chart
On the daily candle chart, the currency exchange rate bounced off the resistance of the channel down pattern. In addition, it has retreated below the support of the simple weekly and monthly pivot points.
From a fundamental perspective the declining pattern captures the fact that the European Central Bank is increasing the EUR money supply. Meanwhile, the US Federal Reserve kept its policy unchanged in June.
Read more in the June Central Banks Updates article.
Daily chart
Read More: Technical Analysis
Traders gain from decline
On Friday, on the Swiss Foreign Exchange 60% of all EUR/USD open position volume was in short positions.
On Thursday, the sentiment was 59% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy, as 63% of orders in that range were bearish.
It can be assumed that those are the stop losses of the short positions, as traders have not taken profits by closing short positions.