On Thursday, the EUR/USD failed to pass the resistance of the weekly R2. It was the third failed attempt. The failed attempt was followed by a decline.
On Friday, after the decline, the rate was located below the combined resistance of the 55 and 100-hour simple moving averages and the 38.20% Fibonacci retracement level at 1.1200.
Economic calendar
During this week there are no more scheduled data releases that might significantly impact the EUR/USD.
EUR/USD hourly chart's review
On Friday, the EUR/USD declined below the resistance cluster of the 55, 100- hour simple moving averages and a 38.20% Fibonacci retracement level at the 1.1200 level.In general, the rate had two scenarios that are based on what will happen at the 1.1200 level.
If the 1.1200 mark gets passed, the rate would once more test the weekly R2 of the simple pivot points, which was located on Friday at 1.1234.
On the other hand, in the case of a bounce off from the 1.1200 level, a decline down to the two pivot points at 1.1170 could occur.
Hourly Chart
On the daily candle chart on Tuesday the rate had reached the combined resistance of the weekly R2 and the 55 and 100-day simple moving averages near 1.1230. By doing this the EUR/USD has removed some of the oversold pressure.
In addition, the daily simple moving averages are acting as a technical resistance. It explains, why the rate failed to pass the 1.1234 level this week despite making three attempts.
Daily chart
Since the middle of Wednesday's London trading session traders were short, as 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment slightly changed on Friday, as it became 70% short.
Meanwhile, trader set up pending orders in 100-pip range around the pair were slightly bullish, as 54% of all orders were set to buy and 46% were to sell.