On Thursday, the EUR/USD traded near previous day's trading levels. The rate had been stopped by the resistance levels at 1.1250.
Meanwhile the 55 and 100-hour simple moving averages were approaching the rate from below, indicating that a squeeze is about to occur.
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
Until Friday there are no notable macroeconomic data releases scheduled to take place.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
As it was previously forecast, the EUR/USD hit the resistance levels near the 1.1250 level and stopped there.In general, the rate is expected to get squeezed in between the resistance of the 200-hour SMA, which was declining near 1.1250 and the support of the 55 and 100-hour simple moving averages near 1.1220.
Piercing of any of the levels will signal the future direction of the rate.
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.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 68% of all open position volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral. Namely, 53% of pending orders were set to buy.