It was followed up by another surge, which could test the resistance of the March 22 high levels near 1.1940.
Economic Calendar Analysis
On Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The EUR/USD has moved from 8.7 to 25.9 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.4 to 15.3 pips on the release.
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 case of the 1.1940 level failing, the currency exchange rate would most likely extend its surge and reach for the 1.2000 level.On the other hand, if the resistance holds, the pair could continue to trade in the zone between 1.1940 and 1.1890/1.1870.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD is recovering despite previously piercing a long term descending trend line's support. Since Wednesday, the currency exchange rate was trading in limbo around the 200-day simple moving average. It appeared that the rate ignored the resistance of the SMA since mid-Wednesday.In the near term future, the rate could reach for the 1.2000 mark. The 1.2000 level's resistance was being strengthened by the 55-day SMA and a 23.60% Fibonacci retracement level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, on the Swiss Foreign Exchange trader open positions were neutral, as 51% of open position volume was in short positions.
On Monday, 52% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 59% to sell the pair.
69% of orders were to sell on Friday.