On Friday, the EUR/USD decreased volatility and continued to trade near the 1.1345 level where the weekly R1 was located together with the 55-hour simple moving average.
Meanwhile, take into account that on Thursday the 100-hour SMA approached the pair from the below. It began to provide significant support. Namely, the SMA managed to keep the rate from declining.
The European Single Currency depreciated against the US Dollar, following the German Flash Manufacturing PMI release on Thursday at 08:30 GMT.
The EUR/USD exchange currency rate lost 11 pips or 0.10% during a minute, right after the release. The European Single Currency continued trading at the 1.1340 area against the US Dollar.
The Markit released German Flash Manufacturing PMI data that came out lower-than-expected of 47.6, compared to forecast 49.7.
"The manufacturing PMI fell further into contractionary territory in February to its lowest in over six years, with sustained robust job creation at factories the only positive takeaway.
The strength in employment is perhaps surprising given the order book situation and lack of pressures on capacity, but goods producers are seemingly looking through the current soft patch in demand." says Phil Smith, Principal Economist at IHS Markit.
Canadian data ends the week
The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.
The event will be covered by Dukascopy Analytics live on a YouTube stream.
For more information watch the weekly Calendar Analysis stream recording.
EUR/USD hourly chart's review
The main update to the EUR/USD hourly chart is that the 100-hour simple moving average has approached the pair from the below.Meanwhile, the pair has reduced its volatility by trading between the resistance of the 55-hour SMA and the mentioned 100-hour SMA.
Due to the reason that the 55-hour SMA failed to hold during the early hours of Friday's trading, the rate is likely to surge as soon as the 100-hour SMA pushes it further upwards.
Hourly Chart
On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1400 level. They were strengthening the R2 weekly pivot point.
It is most likely that this level will provide strong resistance to the surge of the EUR/USD.
Meanwhile, on a larger scale the recent surge is seen as a consolidation of a decline. The consolidation is occurring by retracing back upwards.
Daily chart
The total volume of open positions on the Swiss Foreign Exchange was 63% short since Wednesday.
The trader set up buy and sell orders in a 100 pip range around the rate were neutral on Thursday.
By the middle of Friday's trading the orders in that range were set to sell in 56% of cases.