In the meantime, note that the initial drop of the US Dollar was offset by details of the US employment release. Namely, despite new jobs, higher earnings and lower unemployment rate, the markets spotted that the total workforce had decreased in number.
Economic Calendar Analysis
This week, the top event is scheduled for Thursday. At 13:30 GMT, the United States Consumer Price Index is set to be published. This data set reveals how prices have changed at the consumer level. It is watched by the Federal Reserve to determine the future course of the US monetary policy.
On Friday, at 13:30 GMT, inflation at the producer level will be revealed, as the US Producer Price Index will be published. It is considered that producer level inflation eventually turns into consumer inflation, as producers increase consumer goods prices.
Lower than expected or at forecast inflation is expected to cause a decline of the US Dollar, as it shows that the Federal Reserve can cut interest rates. On the other hand, a return of inflation is set to cause a surge of the USD, as the Fed has to keep rates high or even return to rate cuts.
EUR/USD hourly chart analysis
A move above 1.0980 is set to face a number of resistance levels. First of all, the combination of the weekly simple pivot point at 1.0985 and the 200-hour simple moving average near 1.0990. Afterwards, the 1.1000 mark is set to provide resistance, before the EUR/USD reaches the high level range at 1.1010.In the meantime, a decline below 1.0925 would look for support in the 1.0900 mark, prior to the rate reaching the support range at 1.0880/1.0890.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the lower trend line of the channel pattern and the 50-day simple moving average have held. In the near term future, the rate could test the 1.1070/1.1100 range‘s resistance.Daily chart
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Traders are shorting
On Tuesday, traders were 60% short, as that proportion of all open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the pair were 51% to sell.