The rate had no technical resistance as high as the 1.1780/1.1790 zone. Due to that reason it was expected to surge.
Economic Calendar Analysis
During the week, pay attention to the economic data releases already on Monday. On Monday, at 14:00 GMT the Institute of Supply Management will publish the Non-Manufacturing Purchasing Managers Index results. EUR/USD has moved 10.4 to 26.5 pips on the event.
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair traded along the upper line of the short-term ascending channel.From a theoretical point of view, it is likely that some upside potential could prevail in the market. Note that the exchange rate could face the resistance formed by the monthly PP and the weekly R1 circa 1.17820.
If the given resistance holds, it is likely that the rate could reverse south. In this case the pair could re-test the lower channel line located in the 1.1720/1.1740 area.
Hourly Chart
On the daily candle chart, the rate was located below the resistance of the 55-day SMA at 1.1780. In addition, the rate could find resistance in the upper trend line of the channel down pattern, which captures the rate's September decline.
Daily chart
Read More: Technical Analysis
Minor short sentiment on EUR/USD
On Monday, on the Swiss Foreign Exchange trader open position volume was almost neutral, as 54% of open position volume was short.
The sentiment became 54% short on Friday.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 73% to sell the pair.
Previously, the orders were 60% to sell.