Economic Calendar Analysis
The week will end with the US Retail Sales and Core Retail Sales on Friday at 13:30 GMT. The pair has moved from 8.5 to 21.7 pips.
Click on the link below to find out more about data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
A continuation of the surge would have to pass the 1.1480 level, before aiming at the resistance of the weekly R3 simple pivot point at 1.1512. However, take into account that the 1.1500 mark might act as resistance.On the other hand, the EUR/USD could consolidate its gains by declining. A potential decline might find support in the weekly R2 simple pivot point at 1.1446 and the 1.1450 mark. If the rate moves below these levels, the weekly R1 and the 50-hour simple moving averages might stop the pair near 1.1400.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has broken the resistance of the channel down pattern, which guided the rate since late April. In general, the high inflation shown by the US CPI signals that monetary policy is expected to change. Due to that reason, the old trend was broken.In the near term future, the pair might aim at the resistance of the 100-day simple moving average near 1.1510. Above the 100-day SMA, note that the 1.1600 mark might act as resistance, before the pair approaches the 1.1700 level. At the 1.1700 level, the EUR/USD surge could be stopped by the 200-day simple moving average and a 61.80% Fibonacci retracement level.
Daily chart
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Long sentiment continues to drop
On Tuesday, on the Swiss Foreign Exchange trader open positions were long, as 60% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 67% to sell the Euro against the USD.
On Wednesday, the sentiment was 58% long and pending orders were 80% to sell. The decline of long volume could be explained by bulls taking profits.
By mid-Thursday, traders were 56% long and orders were 76% to sell. Profit taking continues.