- SWFX market sentiment is 51% bearish
- Pending orders in the 100-pip range are neutral
- Only notable Canadian data will be published on Friday
On Friday, the EUR/USD traded near the previous day's levels. However, by the middle of the day's trading the pair had met with additional support levels. The 55-hour simple moving averages had met with the rate at 1.1357, and the 100-hour SMA was close by at the 1.1343 level.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release on Thursday at 19:00 GMT. The EUR/USD exchange currency rate gained 18 pips or 0.16% during a minute, right after the release. The European Single Currency continued trading at the 1.138 area against the US Dollar.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The minutes said, "Almost all participants expressed the view that another increase in the target range for the federal funds rate was likely to be warranted fairly soon".
Only Canadian data left this week
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.The event will be covered live by Dukascopy Analytics. The live coverage will begin ten minutes before the event. It can be watched on the Dukascopy Webinars platform and the YouTube channel.
EUR/USD daily review
During Thursday's trading session, the currency exchange pair broke the resistance of the 200-hour SMA to end the trading session at 1.1389. During Friday morning hours, the rate was trading between the monthly pivot point and the weekly pivot point at the 1.1391 mark.In regards to the near-term future, most likely, the currency exchange rate will surge upwards to meet the upper boundary of the descending large pattern line at 1.1413 to bounce off to trade at the previously drawn pattern.
However, the European Single Currency could pass through the resistances of the large pattern line and the monthly PP to trade near the weekly R1 at 1.1420 level.
Hourly Chart
On the daily chart the currency exchange rate remains in the borders of the descending channel pattern. The surge did not break it. In the longer term the decline is still expected to occur.
Daily chart
The trader open positions bounce around being perfectly balanced. On Friday, 51% of trader were short.
In the 100-pip range trader pending orders were no longer set to sell, as they had become neutral.
Traders have become neutral, as the end of the week approached. It might be explained by various factors. For example, traders are more concentrated on the risk versus safety trade of the GBP/USD and USD/JPY.