- SWFX market sentiment is 53% short
- Pending orders in the 100-pip range are set to buy in 55% of cases
- The pair suddenly dropped during morning hours
Due to a combination of Fundamental information and Technical Analysis resistance levels the EUR/USD plummeted down below the 1.1300 mark on Friday. Moreover, the rate had no support as low as the 1.1260 mark.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate release on Thursday at 12:45 GMT. The EUR/USD exchange currency rate lost 19 pips or 0.17% during a minute, right after the release. The European Single Currency continue trading at the 1.1380 area against the US Dollar.
The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.
According to Howard Archer, Chief Economic Advisor to EY ITEM Club, "ECB slightly trims its forecast of Eurozone GDP growth in 2019 to 1.7% from 1.8% seen in September. 2018 growth estimate cut to 1.9% from 2.0%. Growth still seen at 1.7% in 2020. 2021 growth forecast at 1.5%. Balance of growth risks broadly balanced but moving to downside."
Week is ending with US Retail Sales
The US Retail Sales data sets will be out at 13:30 GMT. The event might cause a 20 pip bounce.The above mentioned data release will be covered by Dukascopy Analytics. The event can be watched either on the bank's webinar platform or on our YouTube channel.
EUR/USD daily review
On Friday, due to a combination of fundamental events and technical level pressure the EUR/USD plummeted down like a brick thrown into a pool. Namely, by the middle of the day's trading the pair was trading below 1.1300.In regards to the near future, the pair faces no technical support as low as the 1.1260 level, where the medium pattern's trend line is located at. In addition, note that the continuation of Brexit turmoil is set to beat the Euro down.
Meanwhile, after a sharp drop currency exchange rates retrace back upwards or trade sideways consolidating at a certain level.
Hourly Chart
The daily chart's junior pattern has bene broken. It signals that there might be another surge in the borders of the larger patterns until the rate reached the upper trend line of the most dominant pattern.
Although, that can happen in more than a couple of ways. Horizontally, by surging upwards or by trading in zig-zags for the next couple of months.
Meanwhile, take into account that the resistance of the 55 and 100-day simple moving averages respectively at 1.1415 and 1.1500 will be providing resistance to a possible surge.
Daily chart
On Friday, 53% of trader open positions on the Swiss Foreign Exchange were shorting the EUR/USD.
Meanwhile, trader pending orders in the 100-pip range were set to buy in 54% of cases.
In general, traders were shorting the decline of the EUR/USD. However, they had their stop losses and take profits close buy, as can be noted by looking at the pending orders in the 100-pip range.