On Thursday, the EUR/USD was heading to the 1.1000 level. The surge was mainly attributed to a decline of the US Dollar that was caused by the US government announcing $2 trillion stimulus measures.
Namely, the US government announced that it is set to borrow money from the public and mainly the Federal Reserve via bonds. The Fed is likely to buy the bonds and put them on their balance sheet, which is buying them with previously non-existing money. That is clear money creation, which dilutes the value of the USD.
Economic Calendar Analysis
The week will end with the US Final GDP data release on Thursday at 12:30 GMT. A move from 5.2 to 12.9 pips has happened during this event since December 2018.
Meanwhile, this week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
EUR/USD hourly chart's review
At mid-day on Thursday, the EUR/USD was testing the resistance of a simple monthly pivot point at 1.0968.If the pivot point would fail to provide resistance by keeping the rate below it, the pair would next aim at the round levels of 1.1000 and 1.1050. Above these levels at 1.1080 there was a technical resistance, which would be reached after passing the round exchange rate levels.
On the other hand, if the rate bounces off the pivot point, it could reach for the support cluster that is located from 1.0879 to 1.0839. There the rate would find support in two simple moving averages and two pivot points.
Hourly Chart
On the daily candle chart, the rate has additional resistance levels. From the 1.1013 to 1.1085 daily simple moving averages were located at. They were expected to slow down or even reverse the ongoing EUR/USD surge.
Daily chart
Since Thursday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had remained almost unchanged since last Friday.
Traders remain short despite the recovery of the EUR/USD that has been occurring since March 20.