Given that the pair is pressured by the 55-, 100- and 200-hour moving averages, it is likely that some downside potential could prevail.
Economic Calendar Analysis
Today, the US Retail Sales is being released at 12:30 GMT.
Next week, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT. Additionally, the German Flash Manufacturing and Services PMIs survey results are set to be issued on Friday, May 22, at 7:30 GMT.
17.05-23.05 Event Historical Reactions
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair broke the lower boundary of the short-term ascending channel. During today's morning, the pair was testing the resistance formed by the 55-, 100– and 200-hour SMAs in the 1.0830 area.If the given moving averages hold, it is likely that some downside potential could prevail in the market. Note that the exchange rate could gain support from the monthly S1 at 1.0776.
If the given support level holds, it is likely that the Euro could consolidate against the US Dollar in the short term. Otherwise, the currency pair could target the weekly S1 at 1.0747.
Hourly Chart
On the daily candle chart, the rate has bounced off the low level of April and March near the 1.0775 mark. This level strengthened the support of the monthly S1 simple pivot point.
Note that the pair is pressured by the 55-, 100- and 200-day moving averages in the 1.0955/1.1030 range.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, 65% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.