During the previous trading session the EUR/USD fluctuated between the 1.12 and 1.13 levels. The volatility was high due to the European Central Bank making a rate statement and hosting a press conference.
On Friday morning, the currency exchange rate was looking for support near the 1.1250 level. There it was bound to rebound and make another attempt to pass the resistance of the 1.1300 level.
The European Common Currency appreciated against the US Dollar, following the EU Monetary Policy Statement data release on Thursday at 11:45 GMT. The EUR/USD exchange currency rate gained 40 pips or 0.36% right after the release. The Euro continued trading at the 1.1260 level against the Greenback.
The European Central Bank released the ECB Main Refinancing Rate data, which came out in line with expectations of 0.00%.
The EU policymakers decide to maintain the interest rates on the marginal lending facility and deposit facility unchanged at 0.00%, 0.25% and –0.40% respectively. The decision was driven by trade tensions and fears of the global recession.
US Employment should impact EUR/USD
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
For more details watch the Economic Calendar Overview. Moreover, feel free to ask questions for details.
EUR/USD hourly chart's review
The EUR/USD was standing at the support of the 55-hour simple moving average and a pivot point at 1.1254. Meanwhile, the rate was being approached from below by the 100-hour SMA.The pair was most likely going to be pushed up by the SMAs through the resistance of a pivot point at 1.1266. In this scenario the rate would afterwards make an attempt to once more pass the resistance of the 1.1300 level.
On the other hand the rate might pass these support levels. In that case the pair would decline down to the 1.1220 mark.
Hourly Chart
On the daily candle chart, the pair is seeing some resistance from the previously pierced 100-day simple moving average. The technical level was located at 1.1277 level on Friday.
In regards to the future, one needs to see how the markets eventually take in all the information from both the Federal Reserve and the ECB. Most likely a direction will be revealed in the upcoming week.
Daily chart
Since the middle of Thursday's trading session, on the Swiss Foreign Exchange 71% of open EUR/USD position volume was in short positions.
In the meantime, trader set up pending orders in 100-pip range around the pair were almost neutral, as 53% of orders were to buy.
In general, traders are sitting on their short positions without close by stop losses or take profits.