The European Single Currency passed the support level of the weekly S1 at the 1.1276 mark. The rate declines towards the weekly S2 at the 1.1229 mark.
Most likely, the EUR/USD will meet 61.80% Fibonacci retracement level at the end of the trading week.
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.
Week of inflation and retail sales data
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.On Tuesday the heads of Bank of England and the US Federal Reserve spoke publicly. UK's Governor Carney spoke at 13:00 GMT and the head of the Federal Reserve Jerome Powell spoke at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All 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 information watch the weekly Calendar Analysis stream recording.
EUR/USD hourly chart's review
During the previous trading session, the European Single Currency was resisted by the 55-hour simple moving average to pass the support level of the weekly S1 at 1.1276. On Friday morning, the rate was located at the 1.1265 mark.In regards to the near-term future, most likely, the currency exchange rate will depreciate to the weekly S2 at the 1.1229 mark.
Meanwhile, the 55-hour and the 100-hour simple moving averages continue to decline the rate towards the 1.1200 level.
Hourly Chart
The large scale situation can be observed better on the daily candle chart.
The second of the previously laid out scenarios has become reality. The rate has pierced the supporting trend line at 1.1300.
Due to that reason, it is expected that step by step through each of the pivot points the rate might eventually reach for the low levels near the 1.1150 mark. At that level a strong cluster of technical support levels was located at.
Daily chart
On Friday, EUR/USD traders on the Swiss Foreign Exchange were short. The sentiment had become 60% short.
Meanwhile, 54% of trader orders for the EUR/USD were set to buy.