On Friday, the EUR/USD bounced off the resistance of a pivot point at 1.1184. The event was expected to be followed by a decline.
Namely, if the pair falls below 1.1170, it in theory should decline as low as 1.1150.
The European Common currency traded sideways against the US Dollar, following the US Retail Sales data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate lost 6 pips or 0.06% right after the release. The Euro continued trading at the 1.1185 level against the Greenback.
Census Bureau released the US Core Retail Sales data, which came out worse-than-expected of 0.1% compared with forecast 0.7%.
According to analysts, the US Retail Sales dropped unexpectedly due to the decreased demand for automobiles and building materials.
This week's data is over
All of the notable data sets of the week have been published. You can watch all of the data covers on the Dukascopy Webinars YouTube channel.EUR/USD hourly chart's review
On the hourly candle it can be observed that the currency exchange rate has bounced off the resistance of the pivot point at 1.1184.In general, the currency pair is expected to decline, as it had no technical support.
Although, before that occurs the rate first needs to pass the 1.1170 level, which has kept the rate from declined. This level has shown itself as a psychological support level during the last twenty four hours.
Hourly Chart
On the daily candle chart, it could be seen that the resistance of the 55-day simple moving average provided resistance and stopped the recent surge.
On Friday, the resistance level had declined and stood at 1.1250.
Daily chart
On Thursday, on the Swiss Foreign Exchange 73% of EUR/USD open position volume was in short positions.
By the middle of Friday's trading session 68% of volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 53% of all orders were set to sell.