The EUR/USD continues to trade in the range between 1.1250 and 1.1300. Although the rate has kept in this range, it has pierced the resistance level at 1.1290, which kept it from surging previously.
If the rate clearly passes the mentioned resistance, in theory it should surge up to the 1.1325 level.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate release on Wednesday at 11:45 GMT. The EUR/USD exchange currency rate lost 3 pips or 0.02% during a minute, right after the release. The European Single Currency continues trading at the 1.2760 area against the US Dollar.
The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.Note, that the Monetary Policy Statement was released at the same time with the ECB Main Refinancing Rate.
"The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary," the ECB said in a statement, reaffirming its interest rate guidance.
No more data this week
This week's data releases have ended. Wait for Monday, as on that day Dukascopy Analytics will publish the weekly Economic Calendar Overview. In the video all of the next week's data releases will be reviewed and question can be asked in the comments.Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On Friday morning, the EUR/USD was trading between a monthly pivot point at 1.1281 as support and a weekly pivot point at 1.1290.In general, it was expected that the weekly pivot point will fail on Friday. In that case the rate would have no technical resistance as high as the 1.1325 level and a surge would begin.
On the other hand, the rate might trade sideways or decline to find additional support below, if it drops below the 1.1281 level.
Meanwhile, take into account that the resistance of the weekly PP will move on Monday and the resistance at 1.1290 will be gone.
Hourly Chart
The daily chart reveals that there is an additional technical resistance level at 1.1325. Namely, the 55-day simple moving average is located at level.
Daily chart
Despite the ECB announcements most of the open EUR/USD positions on the Swiss Foreign Exchange were still short. Since Thursday, 72% of all of the open volume was short.
In general, as the ECB confirmed that it is continuing its money creation scheme, while the US Federal Reserve keeps their policy unchanged the EUR/USD will go down on the larger scale.
Combine that with the short term surge, after which a decline should take place, it is clear why most traders are short on the pair.
Moreover, trader set up pending orders in the 100-pip range were bearish. Namely, 59% of all orders were set to sell.