The EUR/USD is hitting targets and signalling a continuation of the surge is about to occur.
In general, if the fundamentals don't intervene, the rate is set to eventually reach the 1.1424 level.
The European Single Currency appreciated against the US Dollar, following the US Durable Goods Orders data release on Thursday at 13:30 GMT. The EUR/USD exchange currency rate gained 15 pips or 0.13% during a minute, right after the release. The European Single Currency continued trading at the 1.1350 area against the US Dollar.
The Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.3%. Note, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders.
Quiet last week of the month
As it is accustomed, the last week of the month is set to be quiet for fundamental macroeconomic data releases.
The macro week will start on Wednesday. At 13:30 GMT the Canadian CPI data will be published.
On Thursday the US Advance GDP will be released at 13:30 GMT. This event can cause moves of around 20 base points.
On Friday, the Canadian GDP data will be out at 13:30 GMT. It is most likely set to be the event which will cause the biggest move during this week.
For more information watch the weekly calendar analysis stream on our YouTube channel.
EUR/USD hourly chart's review
The EUR/USD reached the targeted 1.1380 soon after yesterday's publications. Moreover, three hours after reaching the weekly R1 at 1.1380 the pair continued to surge and reached the resistance levels of the daily chart at the 1.1400 level.The 1.1400 level managed to hold the pair back from continuing to surge and forced it into a retracement downwards. Although, on Wednesday morning the pair was once more making an attempt to pass the level.
In general, watch the 1.1400 closely, if it gets clearly passed, the rate should head for the weekly R2 at the 1.1424 level. On the other hand, another retreat downwards wot the 1.1380 level might occur, if the 1.1400 holds.
Hourly Chart
On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1400 level. They caused the recent retracement downwards.
Meanwhile, on a larger scale the recent surge is seen as a consolidation of a decline. The consolidation is occurring by retracing back upwards.
Daily chart
Short volume position continues to increase. Namely, of the total open position volume on the Swiss Foreign Exchange 72% of volume was shorting the EUR/USD, on Wednesday.
In the meantime, some additional selling was expected. By the middle of day's trading 54% of trader set up pending orders in the 100-pip range were set to sell.