The EUR/USD has continued to decline. On Tuesday morning, the pair passed the support of the 1.1200 level.
In general, if the pair passes the support of a descending channel on the hourly candle chart, the rate would drop down to the weekly S1 pivot point at 1.1166.
The European Common Currency depreciated against the US Dollar, following the US Employment data set release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 22 pips or 0.20% right after the release. The Euro continued trading at 1.1235 the level against the Greenback.
Bureau of Labor Statistics released the US ISM Non-Farm Employment Change data, which came out better-than-expected of 244K compared with the forecast of 162K.
According to the official release: "Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing."
US data at the end of the week
This week the data that will impact the EUR/USD will come from the US. There are FOMC Meeting Minutes incoming and a couple of minor data releases.
The FOMC Meeting Minutes will come first, as they will be published at 18:00 GMT on Wednesday. The event has caused moves on the EUR/USD from 6.7 to 28.1 pips since November 2018.
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 13.3 to 28.1 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 5.3 to 40.4 pips. Although, note that the 40.4 pip move was actually caused by other announcements being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
EUR/USD hourly chart's review
On Tuesday morning, the EUR/USD passed the support of the 38.20% Fibonacci retracement level at 1.1200. Although, the rate still had the support of a descending channel pattern on the chart.If the support line of the channel down pattern is passed, the rate will have no technical support as low as the 1.1166 level. At that level the weekly S1 pivot point is located at.
On the other hand, the rate might trade sideways below the 1.1200 level until the additional resistance of the 55-hour simple moving average approaches.
Hourly Chart
On the daily candle chart, the pair has broken the support of the ascending channel pattern. The move occurred due to the pattern already ending its work, as both trend lines of the pattern had changed the direction of the rate three times.
In the meantime, an additional pattern was added. The broken channel is junior to the most recently added one.
In accordance with the current patterns, the rate should decline down to the 1.1170 level, where the lower trend line of the added pattern is located at.
Daily chart
Since the middle of Monday's London trading the sentiment was 74% short.
The short traders have continued to profit during the last couple of trading sessions.
Meanwhile, today, trader set up pending orders in 100-pip range around the pair were almost neutral, as 53% of all orders were set to sell and 47% were to buy.