The support of the 1.1120 level has forced the EUR/USD into a retracement back up. A retracement, which on Friday morning was about to reach the 1.1160 level.
At that level the rate was expected to face the resistance of the 100 and 200-hour simple moving averages. The future forecasts are based on these SMAs.
The European Common Currency traded sideways against the US Dollar, following the US Prelim GDP data release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate gained 4 pips or 0.04% right after the release. The Euro continued trading at the 1.1140 level against the Greenback.
Bureau of Economic Analysis released the US Prelim GDP data, which came out in line with expectations of 3.1%.
According to the official release: "Today's estimate reflects downward revisions to nonresidential fixed investment and private inventory investment and upward revisions to exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, were revised up; the general picture of economic growth remains the same."
Canadian data ends the week
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.EUR/USD hourly chart's review
On Friday morning, the EUR/USD was approaching the resistance of the 100 and 200-hour simple moving averages.If the rate breaks the resistance of these simple moving averages, it is bound to aim at the pivot point at 1.1175.
On the other hand, the SMAs might hold their ground and force the EUR/USD into a decline back down to the 1.1140 level.
Hourly Chart
On the daily candle chart, the trend lines of the larger scale dominant patterns can be observed.
In general, the rate continued to trade squeezed in between the trend lines of two massive scale channel down patterns.
The rate is expected to eventually break the support of the 1.1100 level where the lower trend line of the smaller pattern is located at.
Daily chart
On Friday, traders were short, as 64% of open position volume on the Swiss Foreign Exchange was in short positions.
In addition, trader set up pending orders in the 100-pip range were bearish. Namely, 59% of all orders were to sell.