The EUR/USD failed to break the resistance of pivot points near 1.1120. The event resulted in a decline, which on Wednesday morning had reached below the hourly simple moving averages used un Dukascopy Analytics charts.
In theory, the rate should decline to the weekly S1 at 1.1080.
US Preliminary GDP on Thursday
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published. The event has caused moves on EUR/USD charts from 6.4 to 11.9 pips since February.EUR/USD hourly chart's review
On Wednesday morning, the EUR/USD currency exchange rate was located below the resistance of hourly simple moving averages near 1.1090.In general, the rate was expected to decline to the weekly S1 at 1.1080. If the rate drops below the S1, the rate would extend its decline as low as 1.1030.
On the other hand, the rate might trade sideways until the SMAs end their moving sideways and start to go down. In that case scenario the SMAs would push the rate down.
Hourly Chart
On the daily candle chart, it could be observed that despite the rate jumping, it still remains below the resistance of the daily simple moving averages, which are located near 1.1220.
Daily chart
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Short sentiment declines
On Monday, on the Swiss Foreign Exchange 66% of open EUR/USD position volume was in short positions.
By the middle of Tuesday's trading, the sentiment had become 64% short, and on Wednesday the sentiment was already 62% short.
Meanwhile, pending trade orders were still neutral, as 49% of orders in 100 pips range around the current rate were to sell and 51% were to buy.