However, on Friday morning the rate bounced off the 1.1920 level and retraced back to the combined support of the 55-hour SMA and the zone near 1.1880.
Economic Calendar Analysis
Notable events for this week are over.
Next week, on Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The EUR/USD has moved from 8.7 to 25.9 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.4 to 15.3 pips on the release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
If the 55-hour SMA and the 1.1880 support zone manage to provide enough support, the rate could resume its surge. A potential move up would test the resistance zone near 1.1940, where the March 22 high levels are located at. In the case of a larger move upwards, the rate could reach for the 1.2000 level.A failure of the SMA and 1.1880 level could result in a decline to the support of the 100-hour SMA, the weekly S2 simple pivot point and a support zone in the range from 1.1855 to 1.1835.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD is recovering.Since Wednesday, the currency exchange rate was trading in limbo around the 200-day simple moving average. It appeared that the rate ignored the resistance of the SMA since mid-Wednesday.
In the near term future, the rate could reach for the 1.2000 mark. The 1.2000 level's resistance was being strengthened by the 55-day SMA and a 23.60% Fibonacci retracement level.
Daily chart
Read More: Technical Analysis
Long sentiment is gone
On Friday, on the Swiss Foreign Exchange trader open positions were neutral, as 51% of open position volume was in short positions.
The sentiment has been gradually declining from 58% long on Tuesday.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 69% to sell the pair.
60% of orders were to sell on Thursday. Additional short positions could be opened by traders in the near term future.