The EUR/USD has declined below the pivot points, which on Friday were located near the 1.1240 mark.
On Friday morning, the currency exchange rate surged up to pivot point levels and confirmed them as a technical resistance. In general, it was expected that the decline will resume in the near future.
The European Single Currency traded sideways against the US Dollar, following the US Final GDP release on Thursday at 12:30 GMT. The EUR/USD exchange traded in a range of 7 pips or 0.06% right after the release. The Euro continued trading at the 1.1228 level against the US Dollar.
The Bureau of Economic Analysis released the US Final GDP data, which came lower-than-expected. The index was 2.2% compared with forecast 2.4%
According to James Knightley, chief international economist at ING: "Taking a step back it is clear that the US economy continues to perform very well both in absolute terms and relative to key developed market economies. Output is now 20% above its 2008 pre-crisis peak with the economy having grown 24% since its 2009 trough, whereas the UK and Germany are eight percentage points behind and Italy is in a completely different race."
Two data releases end the week
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
EUR/USD hourly chart's review
On Friday morning the EUR/USD traded below the weekly and monthly pivot points near the 1.1240 mark. In the meantime, the rate was being approached from the upside by the 55-hour simple moving average.It was expected that the 55-hour SMA would push the rate down, as soon as it would reach the currency exchange rate.
On the other hand, the resistance of the SMA might fail and the rate would surge above the 1.1245 level. In that case the rate would next test the 100-hour SMA at 1.1270.
Hourly Chart
The daily chart reveals that the daily simple moving averages are far above it. Namely, the 55 and 100-day simple moving averages were located near the 1.1350 level.
This fact signals that the rate has declined sharply and thus can be considered oversold.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, on Friday 74% of volume was shorting the EUR/USD. Previously, 72% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral. Namely, 54% of pending orders were set to sell.