On Tuesday morning, the EUR/USD exchange rate was trading at the weekly S1 located at the 1.1187 mark.
Latest Fundamental Event Report
The European Common Currency depreciated against the US Dollar, following the US Retail Sales data release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate lost 13 pips or 0.11% right after the release. The Euro continued trading at the 1.1215 level against the Greenback.
Census Bureau released the US Retail Sales data, which came out better-than-expected of 0.4% compared with the forecast of 0.1%.
According to the Commerce Department, last month households increased purchases of motor vehicles and a range of other goods. This advance indicates strong consumer spending, which could contribute to the US economy.
US data could impact pair
On Wednesday, the French Flash Services PMI data release will occur at 7:15 GMT. Last time, this release caused a nineteen-pip move. At the same day, the German Flash Manufacturing and Services PMIs data will be released at 7:30 GMT. The previous release caused a thirteen-pip move.
On Thursday, the ECB Monetary Policy Statement will be published at 11:45 GMT. Last time, this release caused a forty-pip move in the EUR/USD pair. Also, the US Core Durable Goods Orders data will be released at 12:30 GMT. Previously, this data release caused only a four-pip move.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT. The previous data release caused a 24-pip move.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair traded sideways along the lower boundary of the short-term ascending channel. During today's morning, the pair breached the given channel south.Note, that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.1220/1.1240 range. Thus, it is likely, that some downside potential could prevail in the market. The rate could face the support of the weekly S2 at 1.1152.
On the other hand, the pair could trade sideways around the weekly S1 at the 1.1187 mark. Also, it is unlikely, that bulls could prevail in the market, and the rate could exceed the monthly S1 at 1.1220.
Hourly Chart
On the daily candle chart, the currency pair was testing the lower boundary of the medium-term ascending trend at 1.1187.
From a theoretical point of view, it is likely, that a reversal north could occur within the following trading sessions. If the given channel does not hold, it is expected, that the rate could decline to the weekly S2 at 1.1152.
Daily chart
On Monday, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were bearish, as 56% of all orders were set to sell and 44% were to buy.