The EUR/USD has reached another target. The currency exchange rate has fallen to the support of the weekly S1 at the 1.1138 level.
In addition, the rate passed this support level and reached as low as 1.1125.
The European Common Currency depreciated against the US Dollar, following the German Flash PMIs data set release on Thursday at 01:30 GMT. The EUR/USD exchange currency rate lost 11 pips or 0.10% right after the release. The Euro continued trading at the 1.1140 level against the Greenback.
Markit released the German Flash Manufacturing PMI data, which came out worse-than-expected of 44.3 compared with forecast 44.9. Also, note, that the German Flash Services PMI was released at the same time.
Phil Smith, Principal Economist at IHS Markit, commented on the release: "At 52.4, the headline Germany PMI remains in modest growth territory in May, indicating that the economy is course to see sustained expansion in Q2 following the rebound of GDP in the opening three months of the year. It is manufacturers who remain the most downbeat about the outlook amid lingering global trade tensions, though the survey highlights that fears of a slowdown may have started to spread to services, where confidence is now at its joint-lowest since 2014."
US GDP is incoming
On Thursday, at 12:30 GMT the US Preliminary GDP will be published. This event, which is considered and shown on the calendars as a top mover, has not caused notable moves.Since November 2017 this event has caused on the EUR/USD moves from 6.8 to 11.9 pips during the five minutes after the release. Note that a move below ten pips on the EUR/USD during five minutes happen often without any data being published.
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD declined sharply and reached the low level of 1.1125 and bounced off it. On Thursday morning, the currency exchange rate was once more testing the support of this level.If the support level would get passed, the rate could make an attempt to reach down to the support of the 1.1100 level. At that level a dominant pattern's supporting trend line was located at.
On the other hand, the rate is oversold, as indicated by the fact that all of the hourly candle chart's simple moving averages are located far above the exchange rate.
Hourly Chart
On the daily candle chart, the trend lines of the larger scale dominant patterns can be observed better.
Note that the 1.1100 level was strengthened by a support line.
Daily chart
Since Friday, 68% of all open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, traders had closed their short positions, as 63% of open volume was in shorts. Most likely traders took profits from the decline.
In addition, trader set up pending orders in the 100-pip range were bearish. Namely, 59% of all orders were to sell.