However, after touching the new high level, the rate began a decline, which could end near the 1.1315 level.
Economic Calendar Analysis
The week will end with the US Employment data set release on Friday 12:30 GMT.
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a 4 EUR/USD pip move, which is below normal volatility.
EUR/USD hourly chart's review
At mid-day on Friday, the EUR/USD stood at the support of the weekly R2 simple pivot point at 1.1316.On the one hand, the pair could pass the pivot point's support. In this case the exchange rate could decline to the support area formed by the 55– and 100-hour SMAs, as well the weekly and monthly S1, the Fibo 38.20% in the 1.1200/1.1265 area.
Meanwhile, note that the rate could gain support from the weekly R2 at the 1.1216 mark. It is likely that the rate could get squeezed by the given level and the monthly R2, thus, trade sideways in the short run.
Hourly Chart
On the daily candle chart, the rate has left far below it the daily simple moving averages, which indicate that the pair is overbought.
Daily chart
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Strong short sentiment remains
Since Tuesday, on the Swiss Foreign Exchange 74% of all EUR/USD open position volume was in short positions.
On Friday, the sentiment had become 75% short. Traders remained short despite the recent surge.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 59% were set to buy.