The EUR/USD has surged and touched the 1.0965 level. In addition, on the hourly chart an ascending channel pattern has been spotted and added to the chart.
During the morning hours of Thursday's London trading session, the rate was heading to the support of the pattern, which was strengthened by the 55 and 100-hour simple moving averages.US ISM Manufacturing PMI
The European Common Currency appreciated against the US Dollar, following the US ISM Manufacturing PMI survey data release on Tuesday at 14:00 GMT. The EUR/USD exchange currency rate gained 24 pips or 0.22% right after the release. The Euro continued trading at the 1.0915 level against the Greenback.
The Institute for Supply Management released the US ISM Manufacturing PMI survey data results, which came out worse-than-expected of 47.8 compared to the forecast of 50.4.
The Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee Timothy R. Fiore commented: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
US Employment Data week
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the EUR/USD from 7.5 to 18.6 pips since September 2018.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 13.3 to 48 pips on the EUR/USD since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
EUR/USD hourly chart's review
On Thursday morning, the EUR/USD was declining and heading to the support of the just spotted channel up pattern. Meanwhile, note that the lower trend line of the pattern was being supported by the 55 and 100-hour simple moving averages.In theory, the rate should bounce off the support levels and make another attempt to pass the resistance levels at 1.0950, 1.0958 and 1.0965.
On the other hand, if the rate drops below the support levels, it would have no technical support as low as 1.0891.
Hourly Chart
On the daily candle chart, the rate continues its decline in the large channel down pattern.
Meanwhile, the daily simple moving averages have been left behind above the 1.1070 level. It indicates that the rate is oversold and it could trade sideways.
Sideways trading in the borders of the channel down pattern could occur until even October 21, as on that date the upper trend line of the pattern would reach the 1.0955 level.
Daily chart
Since Tuesday morning, 60% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The short sentiment increased on Thursday, as 64% were short during the morning hours.
Meanwhile, pending trade orders were neutral, as 59% of orders in the 100-pip range were set to sell and 41% were to buy.
Previously, the orders were neutral.