The favoured forecast of Thursday has become reality, as the EUR/USD has declined. On Thursday, the pair touched the support of the weekly simple pivot point at 1.0823 and the 1.0820 mark.
After doing a retracement back up to the 1.0880 level, on Friday morning, the pair retreated to fluctuate near the described support levels.
Economic Calendar Analysis
Data that might impact the EUR/USD is bound to start being released on Thursday at 07:30 GMT. At that time, the German Markit Flash Manufacturing and Services PMIs are bound to be released. The pair could move around 20 pips on the announcement.
Afterwards, at 08:00 GMT the Euro Zone PMIs could also cause a move of around 20 base points. Prior to the coronavirus crisis, the event caused moves around five pips in five minutes. In fact a five pip move during five minutes on the EUR/USD is considered as a reduced volatility period.
On the same day, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created 32.5 and 23.0 pip moves.
Last but not least, a notable reaction of above then pips could be created by the US Durable Goods orders.
EUR/USD hourly chart's review
On Friday morning, the EUR/USD was testing the support of the 1.0820 level, which was strengthened by the weekly S1 simple pivot point.In the case of the rate passing the support, the rate could aim at the supporting trend line of the recent two session low levels near the 1.0780 level.
However, if the 1.0820 level holds, the rate could rebound and surge back up to the 1.0880 level.
Hourly Chart
On the daily candle chart, the rate bounced off the resistance of the 55-day simple moving average, which is located at the 1.0970 level.
In regards to the future, the pair was expected to test the support of the 1.0780 level, which caused reversals of the rate's direction in February and April
Daily chart
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Traders short the EUR/USD
On Friday, 73% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders had been short throughout the week, as the rate bounced off the resistance of the 55-day SMA.