On Wednesday, the EUR/USD currency pair broke the resistance of the technical levels that were located from 1.0872 to 1.0886.
Meanwhile, by the middle of the day, the rate had revealed a rising wedge pattern, which could continue to guide the pair.
Economic Calendar Analysis
During the week there are no notable events that might impact the EUR/USD currency exchange rate. However, some economic calendars have US and EU events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published. This event has caused moves from 3.0 to 15.1 pips since August.
Moreover, the 15.1 pip move was an anomaly caused by the simultaneous release of other data together with the Durable Goods orders. Without it, the range is from 3.0 to 5.7 pips.
At the same time, the US Preliminary GDP is scheduled to be published. This is the other data set that together with the Durable Goods orders caused a 15.1 pip move. Without the other data, the GDP has caused moves from 6.1 to 11.4 pips.
In general, for there to be a move above ten pips all of the three data numbers should be different from the forecasts in the same way. Either better or worse than expected, all should surprise in the same manner. Such situation is highly unlikely.
Another release on the calendars is the Euro Zone CPI Flash Estimate. It has caused moves from 4.7 to 10.6 pips.
It is a minor one due to the fact that components of this number are being released prior to it. Namely, Euro Zone countries release their data on their own before the combined Euro Zone CPI. The markets more or less already know what is set to be revealed and there is no surprise that could cause a market adjustment.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 24.02-28.02 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair tested the resistance formed by the weekly R1 and the Fibo 23.60% at 1.0886. During today's morning, the pair was testing the given resistance.Note that the exchange rate is trading near the upper boundary of the rising wedge pattern. Thus, it is likely that a reversal south could occur, and the rate could re-test the lower pattern line in the 1.0860 area.
However, if the given resistance and pattern do not hold, it is likely that some upside potential could prevail in the market. In this case the currency pair would have to surpass the weekly R2 at 1.0916.
Hourly Chart
On the daily candle chart, the pair has broken the resistance of the monthly S2 simple pivot point at 1.0872. In theory, the pair could surge as high as the 1.0984 level, where the S1 pivot point is located.
Meanwhile, the fact that the pair's daily simple moving averages were located from 1.1045 to 1.1100, indicated that the pair is oversold.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
Since Monday's trading, the open position volume on the Swiss Foreign Exchange has been neutral 49% of volume was long and 51% was short.
On Wednesday, 52% of volume was in short positions.
Meanwhile, set up pending orders were set to sell, as 58% of orders in the 100-pip range were to sell and 42% were to buy.
On Tuesday, 53% of orders were to sell and 47% were to buy.