On Thursday morning the EUR/USD was set up for another surge. Although, the rate was most likely once more going to be stopped by resistance on the daily chart near the 1.1320 level.
At that level the 55-day simple moving average was still located at. This technical level kept the currency exchange rate down since April 12.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate release last Wednesday at 11:45 GMT. The EUR/USD exchange currency rate lost 3 pips or 0.02% during a minute, right after the release. The European Single Currency continues trading at the 1.2760 area against the US Dollar.
The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.Note, that the Monetary Policy Statement was released at the same time with the ECB Main Refinancing Rate.
"The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary," the ECB said in a statement, reaffirming its interest rate guidance.
Look at US Retail Sales at 12:30 GMT
This week's data releases will end on Thursday.At 08:30 GMT, the UK Retail Sales will be published.
Afterwards, the Canadian and US Retail Sales will be published at 12:30 GMT. Both data sets combined could cause a move on the USD/CAD of up to 30 pips.
Note that the US data is set to influence all USD currency exchange rates.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On the hourly chart on Thursday morning the EUR/USD was located just above the lower trend line of the ascending pattern near 1.1300.Although the rate was facing the resistance of the 55 and 100-hour simple moving averages, it was expected to once more make an attempt to surge up to the 1.1345 level.
On the other hand, the rate might once more trade sideways and fail to pass the resistance of the 1.1320 level.
Hourly Chart
The daily chart reveals that the resistance of the 55-day simple moving average is keeping the rate down. The technical analysis level has been providing resistance since April 12.
Since Monday this level is the top one to watch. Only if it is broken the rate will have a free range to surge up to the 1.1345 level.
Daily chart
On the Swiss Foreign Exchange of the total open position volume 75% was short on Tuesday. The short position proportion had been growing for a week.
On Wednesday morning, 72% of the volume was short. Most likely traders closed short positions when the pair bounced off the support cluster that can be seen on the hourly chart.
The trend continued on Thursday, as 71% of open position volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 58% of all orders were set to sell.