In general, the pair could soon consolidate due to the upcoming United States Federal Reserve rate hike that is scheduled for late Wednesday. Markets need to see what the US monetary policy makers decide and comment in regards to USD base interest rates.
Economic Calendar Analysis
All of the financial markets will be watching the US Federal Reserve Federal Funds Rate publication on Wednesday at 20:00 GMT. Note the time difference in the release, compared to the usual. The US has already switched to summer daylights savings time.
On Thursday, the Euro could move due to the publication of the European Flash Manufacturing and Services sector Purchasing Managers Index results. The publication of these survey results is scheduled from 08:15 up to 09:00 GMT.
Also on Thursday, the US Services and Manufacturing sector Purchasing Managers Indices might impact the financial markets. However, recent releases of the data had minor impact.
EUR/USD hourly chart analysis
If the rate declines due to a strengthening of the USD, watch the weekly S2 and S3 simple pivot point s at 1.0817 and 1.0761. In addition, the 1.0800 mark could turn into support. A major decline below these levels might look for support in the 1.0700 level.However, a potential recovery of the Euro against the US Dollar might be slowed down by the 1.0850 level and the weekly S1 simple pivot point. Higher above, note the combination of the 50-hour simple moving average and the 1.0880 level. If these levels fail to hold, the 1.0900/1.0920 range and the 100 and 200-hour simple moving averages and the weekly simple pivot point are expected to provide resistance.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has passed below the 100-day simple moving average. However, support could still be found in the 50 and 200-day simple moving averages.Daily chart
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Traders are short
Before the US Fed events, traders were 60% short, as that amount of open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the pair were 54% to buy.