Economic Calendar Analysis
The week will end with the US Retail Sales and Core Retail Sales on Friday at 13:30 GMT. The pair has moved from 8.5 to 21.7 pips.
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
In the case of the 50-hour simple moving average pushing the rate up, the EUR/USD would test the resistance of the 1.1480 zone. Above the 1.1480 level, the 1.1500 might act as resistance. Higher above, note the weekly R3 simple pivot point at 1.1512.On the other hand, a decline would have to pass the 1.1450 mark, the weekly R2 simple pivot point and the 50-hour SMA, before aiming at the weekly R1 simple pivot point at 1.1405. In addition, note that the weekly R1 could be soon supported by the 100-hour simple moving average.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has broken the resistance of the channel down pattern, which guided the rate since late April. In general, the high inflation shown by the US CPI signals that monetary policy is expected to change. Due to that reason, the old trend was broken.In the near term future, the pair might aim at the resistance of the 100-day simple moving average near 1.1510. Above the 100-day SMA, note that the 1.1600 mark might act as resistance, before the pair approaches the 1.1700 level. At the 1.1700 level, the EUR/USD surge could be stopped by the 200-day simple moving average and a 61.80% Fibonacci retracement level.
Daily chart
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Long sentiment continues to drop
On Friday, on the Swiss Foreign Exchange trader open positions were long, as 54% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 71% to sell the Euro against the USD.
On Wednesday, the sentiment was 58% long and pending orders were 80% to sell. The decline of long volume could be explained by bulls taking profits.
At mid-Thursday, traders were 56% long and orders were 76% to sell.