Meanwhile, the rate had no technical support as low as the weekly S1 pivot point at 1.2653. Due to that reason the pair could look for support in round exchange rate levels.
Economic Calendar Analysis
This week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 15.7 to 28.9 pips since August.
During the next week there will be minor data sets published, which could cause initial reactions of up to 20 pips. Traders with close by tight stop losses should take into account the times of the macroeconomic data releases.
On Wednesday, the United States Bureau of Labor Statistics is set to publish the Consumer Price Index and Core Price Index at 13:30 GMT.
On Thursday, at 07:00 GMT the German Preliminary GDP could cause a move on Euro pairs.
Afterwards, at 13:30 GMT, expect the weekly US Unemployment Claims. Despite the attention this release gets, we do not recommend monitoring it closely, as the last two releases caused moves below ten base points on the EUR/USD. Namely, the rate moved less than 10 pips in ten minutes. That is in the range of normal volatility.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
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
In the near term future, the rate was expected to decline, as it had no close by technical support. In the case of the pair declining, it would reach for the technical support of the weekly S1 simple pivot point, which was locate at the 1.2163 level.However, note that the 1.2210 level reversed the pair's decline on December 31. Due to that reason it is possible that this and other round exchange rate levels could reverse the rate's direction.
Hourly Chart
On the daily candle chart, the rate has broken the channel up pattern, which has guided the rate since the start of November. It signals that the rate had ended its medium term surge.
Meanwhile, note that the closest by technical support on the daily candle chart is the 55-day SMA and a 23.60% Fibonacci retracement level near 1.2000.
Daily chart
Read More: Technical Analysis
Traders are short
On Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 66% of open position volume was in short positions.
During Friday's trading hours, the sentiment was 65% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 76% to buy the pair.