EUR/USD breaks ascending pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA

The EUR/USD has passed the support of the ascending pattern. By the middle of Friday's trading session the rate traded between two significant clusters of technical levels.

In general, traders will be waiting for break outs out of the range that the pair is squeezed in.

Latest Fundamental Event

The European Single Currency appreciated against the US Dollar, following the US Durable Goods Orders data release last Thursday at 13:30 GMT. The EUR/USD exchange currency rate gained 15 pips or 0.13% during a minute, right after the release. The European Single Currency continued trading at the 1.1350 area against the US Dollar.

The Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.3%. Note, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders.




Canadian GDP ends the week



On Friday, the Canadian GDP data will be out at 13:30 GMT. It is most likely set to be the event which will cause the biggest move during this week.

For more information watch the weekly calendar analysis stream on our YouTube channel.

EUR/USD hourly chart's review

The EUR/USD has passed the lower trend line of the ascending pattern. Although it occurred after reaching the 1.1400 mark for a third time, as expected. Moreover, the pair reached above it to the 1.1420 level.

On Friday, the rate was squeezed in between the technical levels that were providing resistance at 1.1380 and the support levels at 1.1365 and 1.1355. In addition, the 100-hour SMA was crossing the hourly candles at 1.1373.

In general, watch the pair closely, as passing the resistance at 1.1380 or the support at 1.1350 would signal a larger move up or down.

Hourly Chart



On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1390 level. The two levels were providing resistance to the currency pair.

Daily chart

Short open position volume increases

On Friday, on the Swiss Foreign Exchange of the total open position volume 74% was short on EUR/USD.

In the meantime, some additional selling was expected. By the middle of day's trading 56% of trader set up pending orders in the 100-pip range were set to sell.

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