In the near term future, the rate was expected to continue to decline in the borders of the pattern. Although, it can happen in more than one way.
Economic Calendar Analysis
On Thursday, the US weekly Unemployment Claims at 12:30 GMT could cause a minor USD move. The rate has moved from 8.8 to 28.8 pips on the release since May 27.
Later on at 14:00 GMT, the ISM Manufacturing PMI is likely going to impact the value of the US Dollar. This event has caused 9.3 to 16.5 pips during the releases since February 1.
On Friday, at 12:30 GMT, all USD traded assets and currency pairs are bound to move due to the monthly US employment data. The data release will consist of US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The EUR/USD has moved 20.2 to 75.1 pips on the release since February 2021.
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
The pair could trade sideways until it reaches the upper trend line of the channel down pattern and the 55-hour simple moving average catches up with the rate and provides resistance.Meanwhile, note that any kind of decline would have no support besides the lower trend line of the pattern. Namely, the pair could reach the 1.1800 mark without finding support.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has retreated to the support zone that surrounds the 1.1850 mark. If the rate passes this level, the March low level near 1.1700 could be reached. On the other hand, a potential recovery would aim at the 1.2000 mark.Note that the 1.2000 level's resistance was being strengthened by the 100 and 200-day simple moving averages and the 23.60% Fibonacci retracement level.
Daily chart
Read More: Technical Analysis
Long sentiment grows
On Thursday, on the Swiss Foreign Exchange trader open positions were long, as 58% of open position volume was in long positions.
On Wednesday, the open position volume was 55% long.
On Wednesday, trader set up pending orders in the 100-pip range around the pair were 57% to buy the pair. The orders were 58% to buy on Thursday.