From a theoretical perspective, it is likely that some downside potential could prevail in the market.
Economic Calendar Analysis
This week, the top event for the EUR/USD is set to occur.
On Thursday, at 12:45 GMT the ECB Main Refinancing Rate is scheduled to be published. In addition, at the same time the Monetary Policy Statement is set to be published.
However, note that the biggest EUR moves are expected to occur after the 13:30 ECB press conference. Usually, the journalist question part is the one, which reveals new information that impacts the markets.
Meanwhile, a minor reaction could occur on all USD pairs due to the US Unemployment Claims at 13:30 GMT.
On Friday, starting from 08:15 GMT the Markit Purchasing Managers Indices are set to be released for France, Germany and afterwards the Eurozone.
On the same day, at 14:45 GMT, the US PMIs will be published. The US publication has caused EUR/USD moves from 7.8 to 26.4 pips.
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
During Thursday morning hours, the EUR/USD currency pair broke the upper line of the medium-term descending channel.It is likely that the exchange rate could gain support from the 55-, 100– and 200-hour moving averages in the 1.2110/1.2135 area and trade upwards in the short term. The rate could target the weekly R1 at 1.2185.
However, if the given support does not hold, a reversal south could occur in the nearest future. In this case the currency pair could re-test the psychological level at 1.2080.
Hourly Chart
On the daily candle chart, the rate reached the support of the 55-day simple moving average at the 1.2050 level. This SMA provided the rate with support in late November.
Most recently, the simple moving average caused the rate's recovery to the 1.2160 level. In the near term future, it could push the EUR/USD higher.
Daily chart
Read More: Technical Analysis
Swiss traders are neutral
On Thursday, on the Swiss Foreign Exchange trader open positions were neutral, as 52% of open position volume was in long positions.
On Wednesday, the sentiment was 51% long.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 50% to buy the pair.