On Wednesday morning, the currency exchange rate had reached the support of the weekly and monthly simple pivot points and the 200-hour simple moving average.
Economic Calendar Analysis
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published. A EUR/USD move from 8.9 to 26.5 pips is possible.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On the hourly candle chart, it can be observed that the rate passed the 55 and 100-hour SMAs, which could provide resistance. Namely, if the rate bounces off the support levels near 1.1860, it could retrace back up to the SMAs.On the other hand, in accordance with the pattern, the rate should pass the support levels. In this case scenario, it would aim at the weekly S1 simple pivot point at 1.1806 and the psychological support of the 1.1800 level.
Hourly Chart
On the daily candle chart, note the additional resistance of the 23.60% Fibonacci retracement level at 1.2030.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Wednesday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume was in short positions.
On Tuesday, the sentiment was 68% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 58% of all cases.