In the near term future, the sideways trading was expected to continue.
Economic Calendar Analysis
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time. The GDP has caused minor moves from 7.9 to 13.6 pips since October 2019.
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 has been testing the support level formed by the weekly S1 at 1.2089.It is unlikely that some upside potential could prevail in the market due to the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2190/1.2140 range.
If the predetermined support level holds, the exchange rate could trade sideways in the short term. Otherwise, the rate could try to decline below the psychological level at 1.2060.
Hourly Chart
On the daily candle chart, the pair has pierced the support of the 55-day simple moving average, which was pushing the rate up since January 18. However, the decline found support in the late December and early January low level just above the 1.2050 level.
In the near term future, the 55-day SMA should be watched, as it could start to provide resistance.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, on the Swiss Foreign Exchange trader open positions were bearish, as 56% of open position volume was in short positions.
On Thursday, the sentiment was 55% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 60% to buy the pair.