The resistance of the 1.0800 mark was broken this week due to the weakness of the US Dollar. In general, Jerome Powell stated on Tuesday that the Fed needs more data before cutting interest rates. On Wednesday, various US data sets were released either below expectations or at forecast. This caused the drop of the USD.
Meanwhile, it was spotted that 57% of our traders caught the move higher and are in profit.
Economic Calendar Analysis
On Friday, the top event of the week will take place. At 12:30 GMT, the United States employment data sets will be published. This release is most certainly going to create volatility.
EUR/USD hourly chart analysis
An extension of the ongoing gains of the Euro against the US Dollar is set to face the resistance of the weekly R3 simple pivot point at 1.0830. Higher above, the 1.0850 mark has shown to be capable of acting as resistance. If these levels fail, the 1.0900 level might be reached.In the case of a decline, the rate is first set to look for support in the 1.0790/1.0800 range and the weekly R2 simple pivot point. Note that these levels are being crossed by a support trend line that connects the recent surge's ascending low levels. Below the trend line, the 50 and 100-hour simple moving averages are moving higher.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair's recovery has managed to break the resistance of the 50 and 100-day simple moving averages. However, the 200-day SMA is still acting as resistance at 1.0830.A move above the moving average could encounter resistance at previous resistance levels that are near round exchange rate levels. If all of these levels fail, the 1.1130/1.1200 zone will come into play.
In the case of a decline of the pair, it would have to reach below the 50 and 100-day SMAs, before looking for support in the 1.0635/1.0700 range.
Daily chart
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Traders are in profits
Dukascopy traders are bullish on the EUR/USD, as 57% of open position volume is in long positions. On Monday, traders were 58% long.
Meanwhile, pending orders in the 100-pip range around the current rate are 60% to sell the Euro against the US Dollar.
In general, a majority of traders are still in positions that benefited from the fundamental surge. However, they have close by take profits and orders to open short positions.