At 13:30 GMT on Wednesday, the publication of the US Retail Sales caused a drop of the USD value. The EUR/USD surged 13 base points or 0.12% in the first five minutes after the data release. Retail sales had increased in November by 0.3%, compared to the forecast of 0.8%. Meanwhile, Core Retail Sales also came in at 0.3% instead of a forecast of 0.9%.
Economic Calendar Analysis
Top event of the month is scheduled for 19:00 GMT on Wednesday. At that time, the US Federal Funds Rate, FOMC Statement and Economic Projections are going to be published. The USD is expected to be highly volatile.
At 08:30 GMT on Thursday, the German Manufacturing and Services Purchasing Managers Index survey results are set to be published. The Euro is bound to react to the results. Later on, at 09:00 GMT, the Euro Zone PMI survey results will be published and another move of the EUR could occur.
On Thursday, at 12:45 GMT the European Central Bank is scheduled to release the central bank's Monetary Policy Statement.
The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.
Click on the link below to find out more about data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
A decline from the 50-hour simple moving average and a passing of the 1.1260 and 1.1255 levels could result in a test of the support of the weekly S1 simple pivot point at 1.1246. Below the pivot point, the December low levels might stop a decline at 1.1230/1.1235.If the Euro surges against the US Dollar, it would have to pass the resistance of the 50-hour simple moving average at 1.1279 and the 100 and 200-hour SMAs near 1.1290. Further above, note the weekly simple pivot point at 1.1300 and the recent high level zone above 1.1320.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has been going nowhere during the whole of December, as the rate appears to be bouncing around the 1.1300 mark.Daily chart
Read More: Technical Analysis
Traders are long
On Tuesday, on the Swiss Foreign Exchange trader open positions were long, as 64% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the Euro against the USD.
On Wednesday, open positions were 65% long and pending orders were 59% to buy.