In regards to the near term future, the pair could be pushed up by the support of the 55, 100 and 200-hour simple moving averages, which were expected to meet at 1.2110.
Economic Calendar Analysis
Next week in itself is an anomaly, as there are more than twenty notable data sets to watch. In addition, most of them are expected to cause market moves.
A big part of the mass is taken up by the Markit Services and Manufacturing PMIs. On Wednesday, the Purchasing Managers Indices will be released for European countries. Namely, French, German and Eurozone PMIs will be out. In total there will be six data sets.
The French data will be out at 08:15 GMT, and could cause a move from 9.7 to. 30.5. German data, which will be out at 08:30 GMT, has caused EUR/USD moves from 10.4 to 17.5 pips. Afterwards, the Eurozone PMIs at 09:00 might create a move from 7.4 to 13.0 pips.
On the same day, US PMIs and other data from the country will be published. Namely, US Retail Sales at 13:30 GMT and the US Services and Manufacturing PMIs at 14:45 GMT. The Retail Sales have caused moves from 6.0 to 19.7 pips, and the PMIs have made 7.8 to 26.4 pips.
Moreover, at 19:00 GMT the top event of the macro events is occurring. The US Federal Reserve is releasing their FOMC Economic Projections and Statement together with the Federal Funds Rate. Since April the Fed Funds Rate has caused moves from 10.8 to 68.1 pips. However, when the projections are published, the moves are higher, as the EUR/USD moved 36.2 and 68.1 pips in June and September.
On Thursday, the weekly US Unemployment Claims could cause a bounce of around 10 pips on the EUR/USD charts.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
Since Thursday, the EUR/USD currency pair has been testing the psychological level at 1.2160.It is likely that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs in the 1.2110 area. Thus, some upside potential could prevail in the market, and the rate could re-test the 2020 high at 1.2177.
If the predetermined level holds, a reversal south could follow. Otherwise, the currency pair could exceed the psychological level at 1.2200 within the following trading session.
Hourly Chart
On the daily candle chart, the pair has revealed a channel up pattern. Namely, Dukascopy Analytics spotted it on Friday, but it was revealed already on December 3. This pattern captures the rates surge that has been going on since the start of November.
In the meantime, note that the 2018 high level of 1.2528 is marked on the chart, as a 0.00% Fibo. It is connected with the 2017 low level.
Daily chart
Read More: Technical Analysis
Buy orders are gone
Since Monday, on the Swiss Foreign Exchange trader open positions were bearish, as 62% of open position volume was in short positions.
Meanwhile, since Tuesday, trader set up pending orders in the 100-pip range around the pair were 62% to buy the pair.
The orders slightly changed on Thursday, as 64% of orders in that range were to buy. On Friday, the orders were gone, as 52% of orders were to buy.