Economic Calendar Analysis
On Thursday, the US Retail Sales data will reveal whether total sales of consumer goods hae continued to increase. Note that higher retail sales might be due to higher prices not higher amount of goods sold.
EUR/USD hourly chart analysis
In the near term future, the rate was expected to look for support in the 1.1000 mark. If the 1.1000 fails to hold, the weekly R1 at 1.0990 could act as support. Further below, note the ascending hourly simple moving averages. The 50, 100 and 200-hour SMAs are moving upwards. A potential failure of the SMAs could result in the rate returning to the 1.0940/1.0950 range.On the other hand, a resumption of the ongoing Euro surge against the US Dollar would have to break the 1.1040 range. Higher above, the weekly R2 simple pivot point might act as resistance at 1.1063, before the 1.1100 mark is reached.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the recovery occured from the 100-day simple moving average. However, it is clear that fundamentals, not the SMA caused the move.The fundamental adjustment has moved the rate back to mid-July levels. In the near term future, the rate is expected to respect the round levels that have impacted it in the past.
In addition, we have spotted a channel up pattern that could guide the rate up to 1.1200. Most recently, the upper trend line of the pattern acted as resistance.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, Dukascopy traders were shorting the pair, as 70% of all open position volume was in short positions.
Meanwhile, pending trader set up orders were set to sell. Namely, in the 100-point range around the pair 65% of orders were to sell and 35% were to buy.
On Monday, the open positons were 55% short and pending orders were 60% to sell.