On Friday morning, the pair had bounced off the support of the 55 and 100-hour SMAs and reached the 200-hour SMA, which appeared to be failing.
Economic Calendar Analysis
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Next week, on Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. Since April, the EUR/USD has moved from 7.6 to 19.9 pips on the announcement.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The EUR/USD moved from 22.2 to 83.0 pips on the announcements that occurred since March.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. Note that the two last releases caused, respectively, 20 and 40 pip moves.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Friday morning, it appeared that the resistance of the 200-hour simple moving average would fail and the rate should approach the pivot points at 1.1867 and 1.1877.In the case of the pivot points not holding the rate down, the pair would once again test the 1.1900 and 1.1920 levels.
On the other hand, the SMA might hold or the pivot points could cause a decline. In this scenario, the pair would look for support in the 55 and 100-hour simple moving averages near 1.1820.
Hourly Chart
On the daily candle chart, the rate has returned to the borders of the channel up pattern. Moreover, it appears that on Thursday and Friday the pair resumed to respect the support of the previously pierced pattern.
In the meantime, the rate was still considered overbought on the daily candle chart, as daily simple moving averages were located far below the pair.
Daily chart
Read More: Technical Analysis
Traders keep short positions
Since Wednesday, on the Swiss Foreign Exchange 54% of all EUR/USD open position volume was in short positions.
On Friday, the sentiment became 55% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 63% of orders were to buy.
Previously, the orders were 52% to buy.