The EUR/USD has traded in the last 24 hours exactly as described in the first scenario on Thursday. Namely, the rate surged to the upper trend line of a descending channel pattern and bounced off it.
The event resulted in a sharp decline that was followed by sideways trading consolidation. The consolidation ended on Friday morning and the decline was resumed, as the rate fell below the 1.1100 level.
In regards to the near term future, the rate was heading to the 1.1070 level.
Economic calendar
There are no more data releases scheduled for this week that might impact the EUR/USD.
Meanwhile, note that next week there will be only one data release notable enough to cause a move on the EUR/USD charts. Namely, the German Manufacturing and Services PMIs from Markit will be published on Thursday at 07:30 GMT.
Since January the event has caused moves from 14.6 to 33.1 on the EUR/USD.
EUR/USD hourly chart's review
On Friday morning, the rate ended sideways consolidating and began a decline. The rate was heading to the support of the descending channel pattern, which was located at the 1.1070 level.In theory, the rate should respect the trend line by slowing down the decline, surging or trading sideways,
On the other hand, the lower trend line of the channel down pattern is a lone technical support level. Due to that reason it might be passed. In that case scenario the currency exchange rate will have no support as low as the pivot point at 1.1041.
Hourly Chart
On the daily candle chart, it could be observed on Friday that the rate already passed the weekly S1 at 1.1122. The next target for the decline is the psychological support of the 1.1050 level and the weekly S2 at 1.1041.
Note that the weekly pivot points will be recalculated and placed at other spots on Monday.
Daily chart
By the middle of Thursday's trading session on the Swiss Foreign Exchange 70% of open EUR/USD position volume was in short positions.
Some traders took profits during the decline, as on Friday 67% of open position volume was in short positions.
On Friday, trader set up pending orders in 100-pip range around the pair were neutral, as 53% of all orders were set to sell and 47% were to buy.