On Wednesday, the EUR/USD currency pair had reached technical resistance levels near 1.1250.
If the rate manages to surge above this level, it would reach for the pivot point at 1.1280.
The European Single Currency traded sideways against the US Dollar, following the US Durable Goods Orders release on Tuesday at 12:30 GMT. The EUR/USD exchange rate traded in a range of 2 pips or 0.02% right after the release. The Euro continued trading at the 1.1208 level against the US Dollar.
The Census Bureau released the US Durable Goods Orders data, which came lower-than-expected of –1.6% compared with forecasted –1.1%.
The US economic growth is slowing as the stimulus from $1.5T tax cut vanishes. Also, a trade war between the US and China, uncertainty over Brexit and slowing global economies are the factors that negatively impact the US production activity.
US and Canadian employment data
Until Friday there are no notable macroeconomic data releases scheduled to take place.On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.
Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
EUR/USD hourly chart's review
During Tuesday's trading session the Euro traded at the 1.1200 level against the US Dollar. On Wednesday morning, the currency pair jumped to the psychological level at 1.1240.Given that the pair is being supported by the 55– and 100-hour SMAs, currently located circa 1.1220, it is likely, that some upside potential prevails in the market in the nearest future. It is expected, that the pair entrenches near the resistance level formed by the 200-hour SMA and the weekly PP at 1.1253.
If the given support does not hold, most likely, the exchange rate will targets the 2018/2019 minimum located at the 1.1180 mark.
Hourly Chart
The daily chart reveals that the daily simple moving averages are far above it. Namely, the 55 and 100-day simple moving averages were located near the 1.1350 level.
This fact signals that the rate has declined sharply and thus can be considered oversold.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 69% of all open position volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were also bearish. Namely, 55% of pending orders were set to sell.