As it was speculated on Monday, the EUR/USD surged despite breaking an ascending pattern. Namely, the rate tested the resistance of the 1.1000 mark, which once more held.
During Tuesday's London morning hours, the rate was once more heading to the 1.1000 level.
Economic Calendar Analysis
This week there are a couple of events scheduled, which could impact the EUR/USD.
On Tuesday the US PPI release at 12:30 GMT could cause a move. Although, it usually causes a move below ten pips, which is considered insignificant.
On Wednesday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 6.7 to 20.4 base points.
On Thursday, watch out for the ECB Monetary Policy Meeting Accounts at 11:30 GMT. In general, they have not caused sudden moves. Despite that the information revealed could break trends and create larger swings.
On the same day the US CPI will be released at 12:30 GMT. The event has caused moves from 13.3 to 26.9 pips since May. In addition, the reactions have been increasing each month.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
EUR/USD hourly chart's review
The rate was heading for another test of the resistance of the 1.1000 level, which has kept ther ate down since October 3.If the rate manages to break this resistance, it would surge next to the weekly R1 of the simple pivot points at 1.1028. A surge could break the resistance this time because of being supported by the 55 and 100-hour simple moving averages.
On the other hand, in the case of a failure to pass the 1.1000 mark, the pair would retreat back down to the monthly pivot point at 1.0965, which has kept the rate from declining since October 3.
Hourly Chart
On the daily candle chart, the rate has surged in the borders of a channel down pattern. The upper trend line of the pattern is located close to 1.1000.
Meanwhile, the 55-day simple moving average was sharply approaching the currency rate and could reach it during the week.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Monday, 66% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bearish, as 57% of orders in the 100-pip range were set to sell and 43% were to buy.
The orders also had not changed since Monday.