The resistance of the 55-hour simple moving average managed to cause a decline of the EUR/USD currency exchange rate. By the middle of Thursday's GMT trading hours, the pair had passed various support levels.
In the near term future, the rate was about to reach the 1.1200 level.
Economic Calendar Analysis
On Thursday, March 12, the European Central Bank will make its rate announcement, as the Main Refinancing Rate and the Monetary Policy Statement will be published at 12:45.
However, since October 2019, the market has not reacted to this event. The EUR/USD moved from 3.0 to 5.9 pips.
Meanwhile, 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: 09.03-13.03 Event Historical Reactions
EUR/USD hourly chart's review
At mid-day on Thursday, the EUR/USD currency exchange rate was about to reach the 1.1200 level. The round level was expected to provide support. In addition, at the 1.1200 level a 23.60% Fibonacci retracement level was located at.If the support of the 1.1200 level fails to stop the pair's decline, the rate should next aim at the pivot point at 1.1157.
On the other hand, the currency rate might be kept up by the 1.1200 level. In this case the pair would trade sideways between the 200-hour SMA near 1.1250 and the 1.1200 mark.
Hourly Chart
On the daily candle chart, it can be observed that the rate is overbought, as the daily simple moving averages were located near the 1.1100 level. Namely, a retracement back down to the average is occurring.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.