The EUR/USD has surged up to the 1.1280 level during Thursday's trading session. The move occurred with high volatility, as immediately afterwards the rate plummeted back down to support levels at 1.1240.
On Friday morning, the currency exchange rate was trading near the 1.1260 level. In general, the rate was expected to resume its surge, as it had no technical resistance level as high as 1.1307.
The European Common Currency depreciated against the US Dollar, following the US Retail Sales data release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate lost 13 pips or 0.11% right after the release. The Euro continued trading at the 1.1215 level against the Greenback.
Census Bureau released the US Retail Sales data, which came out better-than-expected of 0.4% compared with the forecast of 0.1%.
According to the Commerce Department, last month households increased purchases of motor vehicles and a range of other goods. This advance indicates strong consumer spending, which could contribute to the US economy.
Economic Calendar Overview at 12:00 GMT
Data releases for this week are over.
Watch the Economic Calendar Overview on Friday at 12:00 GMT to review next week's events.
EUR/USD hourly chart's review
On Friday morning, the EUR/USD was trading near the 1.1260 level. At that level the currency exchange rate was consolidating in the aftermath of Thursday's sharp surge and following decline.In general, as the fundamentals were bullish for the EUR/USD on Thursday, our analysts favour a bullish forecast. Namely, the rate could surge up to the next technical resistance level, which is located far away, at the 1.1308 level.
On the other hand, if a decline takes place, it would reach down to the monthly pivot point at 1.1250.
Hourly Chart
On the daily candle chart, the recent jump broke the upper trend line of the descending channel pattern and the 55 and 100-day simple moving averages.
Meanwhile, note that the resistance levels above the 1.1300 level were about to be strengthened by the 200-day simple moving average.
Daily chart
Since Monday, 71% to 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions. Only slight fluctuations of the sentiment had taken place.
Meanwhile, trader set up pending orders in 100-pip range around the pair were bearish, as 58% of all orders were set to sell and 42% were to buy.
In general, the sentiment numbers have not changed since Wednesday.