The EUR/USD currency pair has been trying to surpass the support level - the weekly S3 at 1.1275 since yesterday.
Given, that the pair is pressured by the 55-hour moving average, it is likely, that some downside potential could prevail in the market.
The European Common Currency depreciated against the US Dollar, following the US ISM Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD exchange currency rate lost 13 pips or 0.12% right after the release. The Euro continued trading at the 1.1330 level against the Greenback.
Institute for Supply Management released the US ISM Manufacturing PMI data , which came out better-than-expected of 51.7 compared with the forecast of 51.3.
According to the official release: "Respondents expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed. Of the 18 manufacturing industries, 12 reported growth in June."
US employment on focus
The week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
On the EUR/USD charts this event has caused moves in a range from 13.3 to 48 pips since February.
EUR/USD hourly chart's review
During Tuesday, the EUR/USD currency pair traded sideways between the support level—the weekly S3 at 1.1275 and the resistance level formed by the weekly S2 and monthly PP located circa 1.1310.Note, that the exchange rate is pressured by the 55-hour moving average, currently located at 1.1302. If the given resistance hold, some downside potential could prevail in the market. In this case, the rate could re-test the lower boundary of the short-term descending channel located in the 1.1240/1.1260 range.
However, if the given support level holds, a reversal north could occur within the following trading hours, and the pair could re-test the given resistance. It is unlikely, the pair could exceed the 1.1340 mark due to the resistance formed by the 100– and 200-hour SMAs, as well the monthly S1.
Hourly Chart
On the daily candle chart, the rate has made a decline in accordance with a large scale ascending pattern. Namely, it bounced off its upper trend line last week and has begun to move to the lower trend line of the pattern.
In addition, as it was described on Monday, the 200-day simple moving average provided resistance that pushed the rate down.
Next up below the rate on the chart one can observe the 100-day simple moving average at 1.1264. This level is expected to provide support in the case that the weekly S3 at 1.1275 gets passed.
Daily chart
Since last Monday, most open EUR/USD position volume was in short positions. Namely, 72% of open volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 73% short.
Traders had stuck to their short positions for a whole week. In theory, traders, who are short since June 21 are in the green.
Meanwhile, on Wednesday, trader set up pending orders in 100-pip range around the pair were neutral, as 49% of all orders were set to sell and 51% were to buy.