The EUR/USD has traded almost horizontally during the past 24 hours. Meanwhile, there is a notable event that has occurred during the trading.
After making many attempts to force the currency rate into a decline, the 55-hour simple moving average has failed to push the rate lower. Instead the resistance was broken by the EUR/USD.
The European Single Currency appreciated against the US Dollar, following the US CPI and Core CPI release on Friday at 13:30 GMT. The EUR/USD exchange currency rate gained 9 pips or 0.08% during a minute, right after the release. The European Single Currency continued trading at the 1.1455 area against the US Dollar.
Note that the US consumer prices dropped for the first time in nine months. The Bureau of Labor Statistics released US CPI data in line with expectations of negative 0.01%. Note, that the US Core CPI was released at the same time with the US CPI.
The U.S. Bureau of Labor Statistics reported on Friday, "The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December on a seasonally adjusted basis after being unchanged in November,"
CAD CPI ends the week
On Friday, one data release is left to be watched.The biggest event of the will occur at 13:30. The Canadian CPI will be published. On the USD/CAD there are 30 pip moves even when it hits the forecast. When the data is different there have been 40-85 pip moves.
EUR/USD daily review
During the previous trading session, the rate was resisted by the 55-hour simple moving average to push the rate to the 1.3600 level as it was expected. On Friday morning, the European Single Currency was trading between the monthly pivot point and the weekly S1 at the 1.1395 mark.Most likely, the 55-hour simple moving average will continue retracing the rate to push it to the 1.1340 level during the day.
On the other side, the weekly S1 at the 1.1390 could support the currency exchange rate to break the resistance of the monthly pivot point at 1.1408.
Hourly Chart
On the daily chart the pair has reached the support of the 55-day simple moving average, which is strengthening the weekly S1 at 1.1390.
Although, the SMA was being pierced just like the rest of the previously described support levels. In general, the rate on the daily chart was set to reach for the support levels just below the 1.1350 level.
Daily chart
Traders of the Swiss Foreign Exchange ended the week being 61% short on the EUR/USD.
Meanwhile, trader pending orders in the 100-pip range were set to buy, as 53% of orders in that range were set to buy.
The buy orders indicate that some of the traders have their stop losses and take profits close buy. However, during the recent retracement upwards the short positions were not being closed.