On Thursday morning, the EUR/USD still traded near the 1.1360 level. However, the pair had passed the support of the 100-hour simple moving average.
In general, the rate had no technical support as low as 1.1329. Although, note that this might be a false break out, as the rate had made two false break outs from the yesterday described squeeze.
The European Common Currency traded sideways against the US Dollar, following the US Durable Goods Orders data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate lost 4 pips or 0.03% right after the release. The Euro continued trading at the 1.1362 level against the US Dollar.
Census Bureau released the US Core Durable Goods Orders data, which came out better-than-expected of 0.3% compared to forecasted 0.1%.
New orders for major the US-made capital goods increased better-than-expected in May. Shipments grew significantly. This advance might signal some stabilizing in business spending after it dropped earlier this year.
US GDP ends the week for EUR/USD
On Thursday, the US Final GDP will be published at 12:30 GMT. This is the least important GDP of the three quarterly publications of the US GDP. Since March 2018 this event has caused moves from 7.6 pips to 26.4 pips.
The full review of all of the notable events is available in video on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On the hourly candle chart the EUR/USD has passed the support of the 100-hour simple moving average and had remained below it for more than a couple of hours during the early trading hours of the London trading session.In general, the rate was expected to decline down to the monthly pivot point's support at 1.1329. In addition, note that by the time the rate reaches that level, the 200-hour SMA should approach it from below and strengthen the pivot point.
On the other hand, the rate has previously made false break outs from the observable 55 and 100-hour simple moving averages. Although, the previous break outs did not stay outside the range between the SMAs for more than two hours.
Hourly Chart
On the daily candle chart, the rate has bounced off the combined resistance of a monthly pivot point at 1.1412 and the upper trend line of the large scale ascending channel pattern.
Meanwhile, note that the 200-day simple moving average also provided support to the stopping of the rate's decline. Namely, the SMA was supporting the rate at 1.1350.
Due to that reason on Thursday, it was important to watch the daily SMA, as it was actively slowing down the decline of the rate.
Daily chart
Since Monday, most open EUR/USD position volume was in short positions. Namely, 73% of open volume on the Swiss Foreign Exchange was in short positions.
It was explained by long traders taking profits and opening short positions in the expectations of a retracement down.
These positions should have gained minor profits on Wednesday.
Meanwhile, trader set up pending orders on Thursday in 100-pip range around the pair were bullish, as 58% of all orders were set to buy and 42% were to sell.