It occurred due to the fact that major fundamental events were going on. Namely, the EU and UK trade talks impacted the Euro. Meanwhile, a $900 billion stimulus package was set to be voted upon in the United States Congress.
Economic Calendar Analysis
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays. However, there are still noteworthy data sets being released in the days before people are off from work.
All of the data releases of the week are scheduled to occur on 13:30 GMT.
Namely, on Tuesday, the US Final GDP could cause volatility. The EUR/USD could move from 7.3 to 31.9 pips.
On Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released. The EUR/USD has moved from 2.9 to 18.3 pips on the announcements since July.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair reversed south from the psychological level at 1.2260.It is likely that some downside potential could prevail in the market due to the resistance area formed by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2200/1.2240 range. The exchange rate could target the weekly S2 at 1.2059.
However, if the predetermined resistance does not hold, the rate could reverse north in the nearest future. In this case the pair could target the weekly R1 located at the 1.2316 mark.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern. Most recently it has made a retracement back down to the support of the resistance zone that kept the rate down in the first half of December.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, on the Swiss Foreign Exchange trader open positions were bearish, as 62% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 59% to sell the pair.