Meanwhile, Dukascopy traders have been short since Friday and most likely were gaining profits.
Economic Calendar Analysis
During the week before Christmas, there will be a couple of data releases that could impact the financial markets.
On Thursday, not the publication of the US Final GDP at 13:30 GMT. This is the final of the three quarterly US GDP releases. The United States release quarterly Gross Domestic Data over a span of a quarter. Data is published in three releases – Advance, Preliminary and Final. The most impact comes from the Advance GDP, and the least is from the upcoming Final GDP.
On Friday, the United States Bureau of Economic Analysis will publish the Core Personal Consumption Expenditure Price Index at 13:30 GMT. The change of the index shows how inflation impacts consumers. It is different from the CPI with the fact that it measures only goods that are consumed by individuals.
EUR/USD hourly chart analysis
A potential recovery of the Euro against the US Dollar is set to face the resistance of the 50-hour simple moving average near 1.0940. Higher above, note the 1.0960/1.0965 range that could act as resistance, before the 1.100 mark and the 1.1008/1.1017 range come into play.On the other hand, a decline below 1.0880 could result in a drop to the 200-hour simple moving average and the 1.0825/1.0830 range. Below these levels, the 1.0800 is highly likely set to provide support.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, as written previously, the pair has reached the first target of the breaking out from the squeeze between the daily simple moving averages. See the previously written analysis: "This break out to the upside could aim at the 1.1000 mark. Higher above, note the high level zones near 1.1100 and 1.1250."However, if the move gets overextended and a decline starts, it could look for support in the daily moving averages. First in the 200-day SMA near 1.0820 and afterwards the 50 and 100-day SMAs near 1.0750 and 1.0720.
In the meantime, we have spotted that the recent surge has confirmed the existence of a channel up pattern that captures the pair's surge since early October. The pattern is confirmed, as both resistance and support lines have two reference points.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, the Swiss Foreign Exchange traders were 58% in short positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 52% to sell the Euro against the US Dollar.
On Friday, traders were 60% short and orders were 56% to buy. Cleary, Dukascopy traders expected the bounce off from 1.1000 to extend.