The 200-hour simple moving average has pushed the EUR/USD currency rate down. On Friday the rate traded at 1.1230 level.
Meanwhile, the rate was clearly bouncing around and ignoring the 55 and 100-hour simple moving averages. Due to that reason it could be expected that the currency rate will resume its decline.
The European Single Currency traded sideways against the US Dollar, following the US Durable Goods Orders release on Tuesday at 12:30 GMT. The EUR/USD exchange rate traded in a range of 2 pips or 0.02% right after the release. The Euro continued trading at the 1.1208 level against the US Dollar.
The Census Bureau released the US Durable Goods Orders data, which came lower-than-expected of –1.6% compared with forecasted –1.1%.
The US economic growth is slowing as the stimulus from $1.5T tax cut vanishes. Also, a trade war between the US and China, uncertainty over Brexit and slowing global economies are the factors that negatively impact the US production activity.
US and Canadian employment data
On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
EUR/USD hourly chart's review
On the hourly chart the most attention is given to the resistance of the 200-hour SMA, which had pushed the rate down since Wednesday.On Friday, the simple moving average pushed the rate down once more near the 1.1240 level. In the meantime, the rate ignored the support and resistance of the 55 and 100-hour simple moving averages. Due to that reason it was expected that the rate will decline.
On the other hand, the pair might trade sideways until the 200-hour SMA catches up and causes another sell off of the Euro against the US Dollar.
Hourly Chart
The daily chart reveals that the daily simple moving averages are far above it. Namely, the 55 and 100-day simple moving averages were located near the 1.1350 level.
This fact signals that the rate has declined sharply and thus can be considered oversold. Due to that the rate is expected to either surge or trade sideways on the daily chart.
The sideways trading is expected to occur in the borders between 1.1200 up to 1.1250.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 65% of all open position volume was short.
Previously, on Thursday 68% were short. Some took profits during the recent drop to 1.1200.
Meanwhile, trader set up pending orders in the 100-pip range were once more long. Namely, 55% of pending orders were set to buy.