By the middle of Friday's GMT trading hours, the EUR/USD pair had dropped by a hundred pips, as it had reached the 1.0900 mark.
Economic Calendar Analysis
Next week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips. br>
EUR/USD hourly chart's review
Theoretically, it is likely that the exchange rate could gain support from the 200-hour SMA, the weekly R1 and the Fibo 23.60% in the 1.0880 area. If the given support holds, it is likely that a reversal north could occur in the short run.Meanwhile, note that the pair would have to surpass the resistance cluster formed by the 55– and 100-hour SMAs, as well the weekly R2 in the 1.0935/1.0960 range. If the given resistance holds, it is likely that the Euro could consolidate against the US Dollar.
Hourly Chart
On the daily candle chart, the rate has bounced off the 200-day simple moving average, which remains just above the 1.1000 mark.
Meanwhile, the 55 and 100-day SMAs did not provide support to the rate's Friday decline.
In addition, Dukascopy Analytics spotted that there is a supporting trend line that has kept the rate up since late March.
Daily chart
Read More: Technical Analysis
Short sentiment continues to grow
On Tuesday, on the Swiss Foreign Exchange 55% of all EUR/USD open position volume was in short positions.
By mid-day on Wednesday, the sentiment was 63% short. Moreover, on Thursday, 70% of open position volume was short.
On Friday, traders were 73% short.
Due to that, two things are assumed. Traders managed to short the drop from the 1.1000 to 1.0900 level. Secondly, profits have not been taken.