On Tuesday, the rate traded sideways as expected. On Wednesday, the pair was reached by the support of the 55-hour SMA, which failed to push the EUR/USD higher.
By the middle of Wednesday's trading, the pair had declined to the 1.1060 level and was expected to continue to go down.Economic Calendar Analysis
This week, the EUR/USD is expected to be impacted by fundamentals on two days.
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT. Since April, the rate has moved from 6.7 to 20.4 pips in the five minutes following the release.
On Friday, the German and Euro Zone Manufacturing and Services Purchasing Manager's Indices are set to be published. German data will be out at 08:30 GMT. Euro Zone data will be out at 09:00 GMT.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
EUR/USD hourly chart's review
On Wednesday morning, the rate declined down to the 1.1060 level, passing the support of the 55-hour simple moving average at 1.1070.In the near term future, the rate was expected to reach the support of the 100-hour simple moving average above the 1.1050 level. In the meantime the rate would face the resistance of the 55-hour SMA and the weekly R1 simple pivot point at 1.1078.
If the rate passes the support of the 100-hour SMA, it would test the 200-hour SMA at 1.1037 and the pivot point at 1.1034.
On the other hand, if the support holds, the described resistance levels would be tested. In the case of them being broken, the rate would surge to the weekly R2 at 1.1101.
Hourly Chart
On the daily candle chart, the pair has passed the resistance of the 55-day simple moving average near 1.1045.
Next up, the pair is bound to test the resistance of the 100-day SMA, which on Wednesday was located at the 1.1094 level.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Tuesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
By the middle of Wednesday's London trading hours, the sentiment was 69% short.
Meanwhile, pending trade orders were bearish, as 55% of orders in the 100-pip range were to sell and 45% were to buy.
Previously, the orders were 62% short.