The EUR/USD broke out from the falling wedge pattern of the hourly chart and began to trade in limbo around the 55-hour simple moving average.
The rate was expected to be pushed down by the SMA. Moreover, the 100-hour simple moving average was approaching the currency exchange rate.Economic Calendar Analysis
This week, US data is set to impact the EUR/USD currency exchange rate through the value of the US Dollar.
On Wednesday, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the EUR/USD charts from 7.7 to 26.9 pips.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 5.1 to 14.8 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 13.7 to 24.3 pips.
The week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
Read More: 11.11-15.11 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday morning, the EUR/USD traded in limbo around the 55-hour simple moving average, which was slowly declining near the 1.1030 level.The rate was expected to continue to trade this way until the pressure from the approaching 100-hour simple moving average would push it below the 1.1020 level. The 100-hour SMA was located at 1.1048 at 10:00 GMT.
On the other hand, the rate might trade sideways between 1.1020 and 1.1040 levels, which on Tuesday morning appeared to set the borders for the pair's fluctuations.
Hourly Chart
On the daily candle chart, the pair passed the support of the 55-day simple moving average on Monday. The SMA began to provide resistance to the rate at 1.1040. It is the main reason, why from a technical perspective a surge is unlikely.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
Since Friday, 69% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment decreased to 67%.
Meanwhile, pending trade orders were to mostly to buy, as 81% of orders in the 100-pip range were to buy and 19% were to sell. Previously, the orders were 80% bullish.
Traders continue to short the decline of the EUR/USD with close by take profits and stop losses.
Moreover, some intend to open long positions in the case of a reversal.