In regards to the near term future, the currency exchange rate was expected to surge due to the support of the 55 and 200-hour simple moving averages and the weekly simple pivot point at 1.1790.
Economic Calendar Analysis
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The EUR/USD has moved from 7.2 to 48.9 pips during the release of the PPIs.
However, the 48.9 pips move was an anomaly caused by other data being released together with the PPIs. Instead, expect a move from 7.2 to 12.2 pips.
Next week, notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
In regards to the near term future, the rate was expected to be pushed up by the support of the 55 and 200-hour simple moving averages, which on Friday morning were located just below the 1.1800 mark.In the case of a surge, the rate would test the resistance of the round exchange rate levels, which previously provided resistance. For example, the 1.1840 and 1.1860 level. Afterwards, stronger resistance could be provided by the 1.1900 mark.
On the other hand, in the case of the SMAs failing to push the rate up, the pair could trade sideways above the support of the 1.1800 mark.
Hourly Chart
On the daily candle chart, the EUR/USD rate had pierced the support of the 55-day simple moving average. It was not expected to continue to provide support or resistance in the near term future.
Meanwhile, take into account that the 100-day simple moving average was located at the 61.80% Fibonacci retracement level at 1.1707.
Daily chart
Read More: Technical Analysis
Short sentiment is intact
On Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 55% of open position volume was in short positions.
On Friday, the sentiment was 54% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 53% to sell the pair.
The orders were 54% to sell on Thursday.