During Thursday morning, the EUR/USD currency pair was trading near the upper boundary of the short-term ascending channel.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future.Economic Calendar Analysis
This week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair tested the upper boundary of the short-term ascending channel at 1.1160. During today's morning, the pair was trading near the given line.From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support of the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.1132/1.1139 area.
On the other hand, the currency pair could gain support of the monthly PP at 1.1153, and the Euro could consolidate against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, the pair has support. It is kept up by the 55-day simple moving average and the lower trend line of the last five month surge.
It appears that the hourly and daily candle charts contradict one another. Due to that reason a squeeze between support and resistance levels is expected.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, 63% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, set up pending orders were bearish, as 79% of orders in the 100-pip range were to sell and 21% were to buy.