The EUR/USD ended sideways trading by declining. However, the decline quickly ended with a sharp fundamental surge.
The surge up to the levels just below 1.1110 was caused by better than forecast European Flash Markit PMI data. Namely, French and German Manufacturing and Services Markit PMIs were better than expected.
A full report of the event is bound to be published in the Fundamental Analysis section on the Dukascopy website in the near future.
Economic Calendar
There are no more macroeconomic events scheduled for this week that might impact the EUR/USD currency exchange rate.
EUR/USD hourly chart's review
The surge of the EUR/USD caused by the PMIs has pushed the rate above the 1.1100 level. This level previously provided strong resistance and was the reason for the rate declining prior to the data release.In general, the rate had no technical resistance as high as 1.1130. Due to that reason, in theory, the currency pair should surge up to this level. At that level it would meet with a weekly pivot point and a 200-hour simple moving average.
On the other hand, sharp fundamental moves like the PMI release are often followed by sideways trading, as the market takes in the new information.
Hourly Chart
On the daily candle chart, it could be observed that the exchange rate has been trading sideways for the past five trading sessions.
Meanwhile, the daily simple moving averages, were located above the 1.1200 level, indicating that the currency pair is oversold.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
The sentiment had changed by Thursday, as during the morning hours 65% of open position volume was short.
Meanwhile, pending trade orders were bearish, as 55% of orders in 100 pips range around the current rate were to sell and 45% were to buy.