In the meantime, the pair has revealed to have been declining in a channel down pattern since the sharp decline of July 5. The pattern could guide the rate downwards. However, the publication of the US Employment data at 12:30 GMT might break the pattern.
Economic Calendar Analysis
On Friday, the United States are scheduled to release their monthly employment data at 12:30 GMT. Expect the data release to consist of the Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
EUR/USD hourly chart's review
In theory the currency rate should consolidate its decline by a minor recovery. A potential recovery would face the resistance of the 1.0150 level, the upper trend line of the channel pattern and the 50-hour simple moving average. Higher above, note the 1.0200 mark and the weekly S2 simple pivot point at 1.0220.On the other hand, a decline below the weekly S3 simple pivot point and the support line of the channel pattern, the rate might find support in the 1.0050 level. Further below, the 1.0000 level or parity of the Euro against the US Dollar is located.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has passed the low level zone of 1.0340/1.0400. In theory, the pair has no technical support as low as the lower trend line of the channel down pattern near 1.0050.If no round exchange rate level provides support and the monetary policy of the ECB and the Fed remain unchanged, the EUR/USD might soon reach parity.
Daily chart
Read More: Technical Analysis
Traders are long despite drop
On Friday, on the Swiss Foreign Exchange, trader open positions were bullish, as 66% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 56% to sell the Euro against the USD.
On Thursday, trader positions were 67% long and pending orders were 53% to sell.