On Thursday morning, the EUR/USD touched a low level at 1.0995. Afterwards, it began a surge, which quickly reached the resistance of the 55-hour simple moving average near 1.1015.
The SMA provided the needed technical resistance to cause a decline, which was expected to reach new low levels. US Consumer Price Index
The European Common Currency traded sideways against the US Dollar, following the US CPI data release on Wednesday at 13:30 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.04% right after the release. The Euro continued trading at the 1.1007 level against the Greenback.
The Bureau of Labor Statistics released the US CPI data, which came out better-than-expected of 0.4% compared with the forecast of 0.3%.
According to the official release: "The index for all items less food and energy rose 0.2 percent in October after increasing 0.1 percent in September. Along with the indexes for medical care and for recreation, the indexes for used cars and trucks, for shelter, and for personal care all rose in October, though the increase in the shelter index was the smallest since October 2013. The apparel index fell in October, as did the indexes for household furnishings and operations, for new vehicles, and for airline fares."
Economic Calendar Analysis
EUR/USD hourly chart's review
As it was already mentioned, on Thursday morning the EUR/USD bounced off the resistance of the 55-hour SMA near 1.1015.Hourly Chart
On Thursday, on the Swiss Foreign Exchange 62% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were to mostly to buy, as 77% of orders in the 100-pip range were to buy and 23% were to sell. Previously, the orders were 82% bullish.
During the recent reversal some short positions were closed. However, most traders are still shorting the EUR/USD with close by buy orders.
In addition, some have set up buy to open long position orders in the expectations of a larger retracement back up.