During Friday morning, the EUR/USD currency pair was testing the weekly R2 at 1.1137.
The pair could gain support of the 55- moving average to breach the given resistance and extend gains. A possible upside target is the 1.1200 mark.
Economic Calendar Analysis
This week there are no events left that could affect the EUR/USD pair.
Take into account that next week there will be couple events, which are expected to cause larger reactions on the currency exchange rate.
On Thursday, October 24, the French Flash Services PMI survey results will be published at 7:15 GMT. Also, the German Flash Services and Manufacturing PMIs survey results will be published at 7:30 GMT.
At the same day, the ECB Monetary Policy Statement, as well the Main Refinancing Rate data releases will be published at 11:45 GMT.
Moreover, the US Durable Goods Orders data will be released at 12:30 GMT.
Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair tried to surpass the resistance level formed by the weekly R2 at 1.1137. During today's morning, the pair continued to test the given resistance.If the given resistance level holds, it is likely that the Euro could continue to consolidate against the US Dollar in the short run. Otherwise, the exchange rate could reverse south. However, it is unlikely that the rate could drop lower than the monthly R1 at 1.1045.
If the given resistance level does not hold, the Euro could extend gains against the Greenback in the nearest future. A possible upside target is the resistance formed by the monthly R2, the weekly R3 and the Fibo 38.20% circa 1.1200.
Hourly Chart
On the daily candle chart, the pair has reached the resistance of the 100-day simple moving average. The SMA is both providing resistance and signalling that the EUR/USD is no longer oversold on the larger scale.
Daily chart
Read More: Technical Analysis
Traders sell the EUR/USD
Since Thursday, 73% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were strongly bearish, as 77% of orders in the 100-pip range were set to sell and 23% were to buy.