A potential surge of the rate could reach for the resistance of the weekly R2 simple pivot point at 1.2323.
Economic Calendar Analysis
The first week of the year is bound to have notable data releases. The top among them are the release of the US Federal Open Markets Committee Meeting Minutes and the US monthly employment data sets.
On Tuesday, at 15:00 GMT, a minor move could be caused by the release of the US ISM Manufacturing PMI. The EUR/USD has moved 9.1 to 40.0 pips on the announcement since August.
On Wednesday, the mentioned FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 5.4 to 9.8 pips. Note that there was an anomaly of 23.2 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The release have caused moves, respectively, from 11.1 to 23.8 and 10.4 to 16.9 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 15.7 to 28.9 pips since August.
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
After breaking all of the resistance near the 1.2260 level at midnight to Wednesday, the rate was heading to the resistance of the 1.2323 level, where the weekly R2 simple pivot point was located.In the case of the pivot point failing to provide resistance, the pair could reach for the weekly R3 at 1.2389 and afterwards, the 1.2400 round exchange rate level.
On the other hand, the pair might be forced to trade sideways by the weekly R2, as it could consolidate in the aftermath of the recent major gains.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern, which has been guiding the rate since the start of November.
Most recently, the pair reached a new high level by passing the previous December high level. In the meantime, note that the surge should continue its surge, as the resistance of the pattern was located near the 1.2440 mark.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, on the Swiss Foreign Exchange trader open positions were bearish, as 63% of open position volume was in short positions.
Note that since the previous Wednesday the sentiment had been near the 60% short level.
Meanwhile, since Tuesday, trader set up pending orders in the 100-pip range around the pair were 62% to sell the pair.