During Tuesday morning, the EUR/USD currency pair was testing the resistance formed by the weekly PP at 1.1139.
Note that the pair is pressured by the 200-hour SMA. Thus, it is likely that some downside potential could prevail in the market.Economic Calendar Analysis
Today, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair tried to surpass the weekly PP at 1.1139. During today's morning, the pair continued to test the given resistance.In this case the rate could gain support provided by the 55– and 100-hour SMAs, currently located circa 1.1120. If the given support holds, it is likely that the Euro could consolidate against the US Dollar in the short run.
However, if the 100-hour SMA holds, it is likely that a reversal south could occur in the nearest future, and the currency pair could re-test the lower channel line. If the given channel does not hold, the pair could decline to the weekly S1 at 1.1072.
Hourly Chart
On the daily candle chart, the pair has support. It is kept up by the 55-day simple moving average and the lower trend line of the last five month surge.
It appears that the hourly and daily candle charts contradict one another. Due to that reason a squeeze between support and resistance levels is expected.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, 65% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, set up pending orders were bearish, as 75% of orders in the 100-pip range were to sell and 25% were to buy.