On Thursday, the EUR/USD traded between the 55 and 100-hour simple moving averages.
Due to the fact that after a chart review a new ascending pattern was spotted and the rate had bounced off its support line, it was expected that the pair will test the resistance of the 100-hour SMA at 1.1330.
ECB announcement day
On Thursday, all attention will be on the European Central Bank. The bank will publish its Main Refinancing Rate at 12:45 GMT and host a press conference at 13:30 GMT.
The rate announcement has become insignificant, as the ECB keeps their rate at 0.00%. Instead during the press conference the heads of the bank will reveal information about the ECB's asset buying program.
On Friday, Canada and the US will publish their monthly employment data sets. It has five important data sets impacting the USD/CAD. It is the most complicated one to work with, as each data set impacts the rate differently.
For more information watch the weekly calendar analysis stream on our YouTube channel.
Click Here: Economic Calendar Analysis
EUR/USD hourly chart's review
During Wednesday's trading session, the 55-hour simple moving average retraced the rate to 1.2800. On Thursday morning, the currency exchange rate broke the resistance of the 55-hour simple moving average to stay at the 1.1308 mark.In regards to the near-term future, it is expected that the rate will trade sideways between the 55-hour and the 200-hour simple moving averages at the 1.3220 level.
However, the European Single Currency could depreciate against the US Dollar during today's EU Main Refinancing Rate at 12:45 GMT to push the rate to break the pattern line at the 1.1280 mark.
Hourly Chart
On the daily chart it can be observed that the recent decline was started by the combined resistance of the 55 and 100-day simple moving averages, which forced the rate lower.
Meanwhile, note that the daily chart needs a full review, which is set to be conducted in the near future.
Daily chart
Read More: Technical Analysis
Traders are shorting the EUR/USD
On Thursday, 69% of trader open position volume on the Swiss Foreign Exchange was short on the EUR/USD.
In the meantime, trader set up pending orders in the 100-pip range were also short. Namely, 57% of pending orders were set to sell.
Majority of traders remain firmly short on the EUR/USD. In the meantime, some are prepared to open additional short positions.