On Friday, the EUR/USD was continuing its recovery, which began on Thursday. Namely, the rate was surging after rebounding at the 1.1480 level.
Meanwhile, note that the rate was being supported by the 55-hour SMA, as it was about to reach the combined resistance of a previously pierced resistance line of a larger pattern and the monthly second resistance of the simple pivot point at 1.1545.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release on Wednesday at 19:00 GMT. The EUR/USD exchange currency rate gained 22 pips or 0.19% during a minute, right after the release. The European Single Currency continued trading at the 1.1535 area against the US Dollar.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
The meeting summary stated, "With an increase in the target range at this meeting, the federal funds rate would be at or close to the lower end of the range of estimates of the longer-run neutral interest rate, and participants expressed that recent developments, including the volatility in financial markets and the increased concerns about global growth, made the appropriate extent and timing of future policy firming less clear than earlier."
US CPI ends the week
At 13:30 GMT the US CPI and Core CPI data sets might cause a 10-30 pip moves on various currency exchange rates that involve the US Dollar.Meanwhile, note that on Monday, at 12:00 GMT the weekly Economic Calendar Analysis stream will take place. It can be watched later by clicking on the links on the daily Trading Ideas publications.
EUR/USD daily review
During the previous trading session, the rate was trading sideways stayed between the weekly R1 and the weekly R2 as it was expected! On Friday, the European Single Currency was trading near the support levels of the 55-hour SMA and the bottom boundary of the ascending pattern line at 1.1529.In regards to the near-term future, most likely, the currency exchange rate will try to break the resistance level of the medium pattern line at 1.1550 to trade towards the weekly R2 at 1.1588.
On the other hand, the rate could be resisted by the medium pattern line at 1.1550 to pass the 55-hour and the 100-hour SMAs to trade at the 50.00% Fibo at 1.1462!
Hourly Chart
On the daily chart during the recent surge the pair reached the upper trend line of a large scale medium pattern, which we expected to guide the rate higher during a couple of months.
Due to that reason the pair is expected to either retreat or trade sideways in the upcoming weeks. That way it can reach the upper trend line of a dominant pattern somewhere below the 1.1600 level.
Daily chart
This week the sentiment became largely oversold on the EUR/USD. On Friday, 75% of trader open positions on the Swiss Foreign Exchange were short.
Meanwhile, trader pending orders in the 100-pip range were set to buy in 51% of cases. Previously, the orders were set to buy.
The traders, which became massively short previously are taking heavy losses, as the rate is surging. However, the larger trend signals that a decline might take place.
Moreover, the traders are sticking to their positions, as the pending orders in the 100-pip range around the currency pair are neutral.