During today's morning, the EUR/USD currency pair was trying to breach the resistance level formed by the weekly R1 at 1.1103.
Given that the pair is supported by the 55-, 100- and 200-hour moving averages, it is likely that some upside potential could prevail.
US Retail Sales at 12:30 GMT
This week will end with the US Retail Sales release at 12:30 GMT on Friday, September 13. Last release caused almost a fifteen-pip move.
Next week there will not be many events that could have an impact on the EUR/USD rate.
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time. Last release caused a 53.6-pip move.
EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair was volatile, and a breakout north from the falling wedge pattern occurred. During Friday morning, the pair was testing the weekly R1 at 1.1103.If the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the exchange rate could drop lower than the 1.1015/1.1039 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP.
If the given resistance does not hold, it is likely that the European Common Currency could appreciate against the US Dollar in the short term. Note that the nearest resistance level, formed by the weekly R2 and the monthly R1, is located at 1.1174.
Hourly Chart
On the daily candle chart, a new descending channel pattern has been added. It represents the rate's decline since June.
In general, the pattern is expected to provide resistance to the rate during the next couple of weeks.
Daily chart
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Traders remain short
On Friday morning, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bearish, as 69% of orders in 100 pips range around the current rate were to sell and 31% were to buy.