The rate has reached the next technical resistance level at 1.1345. Although, the pair reached the resistance only after first dropping down to the 1.1280 mark.
If one did not had a faraway stop loss with a small long position, it is unlikely that profits were had from this move.
In addition, note that volatility had increased highly during the jump. Moreover, it is attributed to the fundamental news that Theresa May is set to visit the EU and renegotiate the Brexit terms.
The European Single Currency appreciated against the US Dollar, following the US Retail Sales data released on Thursday at 13:30 GMT.
The EUR/USD exchange currency rate gained 19 pips or 0.17% during a minute, right after the release. The European single currency continued trading at the 1.1295 area against the US Dollar.
The Census Bureau released US Retail Sales data that came out lower than expected of negative 1.2%, compare to forecasted 0.1%. Note, that the US Core Retail Sales was released at the same time with the US Retail Sales.
"The equity meltdown? Maybe there is something in that perhaps, as there was from the apparent inability of seasonal adjustment factors to cope with the now-pervasive bring forward of (on line) sales into November from Black Friday and Cyber Monday. Perhaps revisions are pending," says David de Garis, a director and senior economist at National Australia Bank.
FOMC Meeting Minutes incoming today
This week will have various data releases in various countries that will influence many currency exchange rates.The main event of the week will be the release of the Federal Open Markets Committee Meeting Minutes today. The FOMC Meeting Minutes will be published at 19:00 GMT. They are expected to cause an impact on all USD pairs.
On Thursday, EUR traders will pay attention to the Markit released European Services and Manufacturing PMIs. The German release at 08:30 GMT is the most important.
Later on during the same day the US Durable Goods Orders and Core Durable Goods Orders will be published.
The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.
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
On Wednesday morning the EUR/USD was trading in limbo around the technical level of the weekly pivot point at 1.1345. The short term forecast concentrates on this pivot point.The first scenario is that the pair finds support in the level and the additional technical support of the various hourly simple moving averages that are approaching the pair from below. In that case the pair would surge up to the weekly R2 at the 1.1397 level.
On the other hand the pair might continue to consolidate its gains or even decline down to the 55-hour SMA. Wait for signals that would reveal the upcoming future. Namely, at one moment the pair will break out of trading between 1.1320 and 1.1360.
Hourly Chart
On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1400 level together with the previously mentioned pivot point.
It is most likely that this level will provide strong resistance to the surge of the EUR/USD.
Meanwhile, on a larger scale from a technical perspective the recent surge is seen as a consolidation of a decline. The consolidation is occurring by retracing back upwards.
Daily chart
The total volume of open positions on the Swiss Foreign Exchange was once more 63% short on Wednesday.
The sentiment had decreased slightly on Tuesday.
Meanwhile, of all the trader set up buy and sell orders in a 100 pip range around the rate buy orders dominated. Namely, 51% of orders were long since Tuesday.
It is assumed by seeing that the pending orders are almost neutral that the current short positions don't have close by stop losses and take profits.
They are further away, as it is in the case of longer term trade set ups.