The decline of EUR/USD continues. As the short positions of Swiss Traders have been intact, the traders have continued to profit.
During the early hours of Thursday's trading the pair was aiming at the 1.1330 level, where the weekly S2 was located at.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release the previous Wednesday at 19:00 GMT.
The EUR/USD exchange currency rate gained 45 pips or 0.39% during a minute, right after the release. The European Single Currency continued trading at the 1.1480 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.
"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.
Nothing for EUR/USD
No fundamental macroeconomic data releases will influence the EUR/USD this week.Meanwhile, there are two data releases, which are set to increase volatility on other pairs and one might trade them.
The Bank of England rate announcement is scheduled to occur on Thursday. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.
Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below.
EUR/USD hourly chart's review
On Thursday morning, the currency exchange rate was located at the 1.1345 mark.In regards to the near-term future, it is expected that the European Single Currency will continue depreciating against the US Dollar to the weekly S2 at the 1.1330 mark. Moreover, most likely, the rate will pass the support level of the weekly S2 to bounce off the small pattern line at the 1.1320 mark.
However, the rate could be retraced by the weekly S2 to stay at the 1.1340 level for the rest of the trading day.
Hourly Chart
By looking at the daily chart it can be observed that the pair is close to the lower trend line of a dominant ascending pattern.
In the second half of January the trend line forced the currency exchange rate into the surge, which pierced the 1.1500 level.
It is expected that it will hold its ground and force the rate into a rebound. Although, always prepare for more than one scenario.
Namely, if the pair passes the support of the trend line it could fall freely as low as 1.1150, as there are no other support levels on the daily chart besides the weekly and monthly pivot points.
Daily chart
The sentiment of the Swiss Foreign Exchange remained largely short on Thursday, as 68% of traders remained short. The sentiment had been largely short throughout the week.
Meanwhile, by looking at the pending orders in a 100-pip range above and below the current exchange rate one can see where the rate might move in the near future.
57% of pending orders are to buy.
In general, traders are shorting the EUR/USD but have their stop losses and take profits close by.