During the second half of Wednesday's trading, the EUR/USD was pushed up by the 55-hour SMA, which caused a piercing of the pivot point near 1.1090.
On Thursday morning, the EUR/USD was still kept up by the support of the SMA, and it was expected that it would push the rate clearly through the 1.1090 level. Fundamentals Crash US Dollar
Since Monday, December 2, the US Dollar had been depreciating.
Most likely, the Greenback is pressured by various fundamental events. Firstly, on Monday, the World Trade Organization rejected the EU claims for providing subsidies to Airbus. Thus, the US could increase tariffs on more European goods.
Also, on Monday, Cuba took another step to end dual monetary system, and two department stores in Havana began to give change only in pesos.
Moreover, the US President Donald Trump announced tariffs on the US steel and aluminum imports from Brazil and Argentina. Trump claimed that the given countries control devaluation of their currencies, and it was harmful for the US farmers.
According to analysts, the Greenback was also pressured, as the US factory activity has been declining for four months. Also, the US construction spending dropped in October.
On Tuesday December 3, the EU representatives said that the union was ready to reciprocate in case the US would impose tariffs on the French products worth $2.4B.
All these events could negatively affect the demand for the US Dollar, as trade flows could decrease significantly.
Economic Calendar Analysis
There are no notable data releases, which could impact the rate on Thursday.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 14.5 to 41.4 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
EUR/USD hourly chart's review
During Thursday London morning trading hours, the EUR/USD was being pushed into the weekly pivot point at 1.1093 by the support of the 55-hour simple moving average.If the pivot point fails to hold, the rate would have no technical resistance as high as the 1.1200 level, where a 38.20% Fibonacci retracement level was located at.
On the other hand, the rate might trade sideways until the week ends. Next week, new pivot points would be calculated, and most likely they would provide resistance to the currency exchange rate.
Hourly Chart
On the daily candle chart on Thursday, the rate traded above the 100-day SMA, which had begun to provide support at 1.1072.
Meanwhile, there is something more noteworthy on the daily candle chart. At the 1.1163 level the 200-day simple moving average was located at. It might stop any attempts of the rate to surge.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
By the middle of Thursday's trading session, the sentiment was 70% short.
Meanwhile, pending trade orders were bearish, as 66% of orders in the 100-pip range were to sell and 34% were to buy. Previously, the orders were 71% to sell.
Traders are still waiting for a decline of the pair.