On Thursday, the EUR/USD tested a cluster of resistance levels that were located from 1.1210 to 1.1220.
By the middle of the day's trading the currency pair had failed at an attempt to pierce through the cluster, as the 100-hour SMA managed to stop the surge attempt.
The European Common currency traded sideways against the US Dollar, following the US Retail Sales data release on Wednesday at 12:30 GMT. The EUR/USD exchange currency rate lost 6 pips or 0.06% right after the release. The Euro continued trading at the 1.1185 level against the Greenback.
Census Bureau released the US Core Retail Sales data, which came out worse-than-expected of 0.1% compared with forecast 0.7%.
According to analysts, the US Retail Sales dropped unexpectedly due to the decreased demand for automobiles and building materials.
This week's data is over
All of the notable data sets of the week have been published. You can watch all of the data covers on the Dukascopy Webinars YouTube channel.EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair tested the support level formed by the weekly S1 at 1.1184.During today's morning, the pair raised to the resistance level formed by a combination of the 100-hour SMA, the weekly and monthly PPs at 1.1220. If the given resistance holds, it is expected, that a reversal south could occur, and the exchange rate could re-test the given support.
However, note, that the rate is supported by the 55– and 200-hour moving averages at 1.1212. Thus, the rate could breach the given resistance and reach the psychological level at the 1.1240 mark.
Hourly Chart
On the daily candle chart, it could be seen that the resistance of the 55-day simple moving average provided resistance and stopped the recent surge.
On Thursday, the resistance level had declined and was expected to soon provide resistance at 1.1250.
Daily chart
On Thursday, on the Swiss Foreign Exchange 73% of EUR/USD open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 57% of all orders were set to sell.