In general, the markets expected that the Manufacturing and Services sectors are doing badly. Although, it was revealed that the Services sector in the European countries is even expanding.
Economic Calendar Analysis
At 13:45 GMT, all of financial markets could move due to the publication of the United States Manufacturing and Services sectors Purchasing Managers Indices.
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
EUR/USD hourly chart analysis
An extension of the decline of the pair could look for support in the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.0648/1.0660. Below this range, note that the pair paused at 1.0640 and 1.0625. These levels would need to fail, before the pair reaches the 1.0600 mark and the weekly S1 simple pivot point at 1.0606.On the other hand, a surge of the Euro against the Dollar would have to break the 1.0675/1.0690 range, the weekly R1 at 1.0695 and the 1.0700 mark. Above these levels, the next target could be the weekly R2 at 1.0767.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has reached below the support of the 1.0635/1.0700 range. It could be the case that the range turns into resistance, if the pair fails to reach above 1.0700.A resumption of the decline would result in the pair looking for support in the lower trend line of a channel down pattern and the 1.0520/1.0535 range that captures an early 2023 low level range.
Daily chart
Read More: Technical Analysis
Traders remain long
On Tuesday, traders were 65% bullish as that amount of open position volume was in long positions.
Meanwhile, pending orders in the 100-pip range around the pair were 53% to sell.
Last Thursday, traders were also long. 64% of open positions were long and pending orders were 70% to sell.