It is likely that the exchange rate could follow the given channel in the short term.
Economic Calendar Analysis
This week's data is available. Click on the link below to see the historical data tables with the reactions to the events.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The EUR/USD has moved from 7.1 to 26.9 pips because of the release.
On Friday, the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the EUR/USD pair since September 2019 from 8.7 to 25.4 base points.
Read More: 10.02-14.02 Event Historical Reactions
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair declined to the lower boundary of the medium-term descending channel at 1.0945. During today's morning, the pair was trading near the given line.From a theoretical point of view, it is likely that some upside potential could prevail in the market. In this case it is unlikely that the exchange rate could exceed the weekly PP at 1.0995.
However, note that the currency pair is pressured by the 55-hour SMA. Thus, the pair could decline along the lower channel line in the short run. If the given channel does not hold, the pair could go below 1.0920.
Hourly Chart
On the daily candle chart, as the support of the 1.1000 level has been passed, the pair has no support as low as the monthly S2 pivot point at 1.0872.
In the meantime, the rate has left the daily simple moving averages in the range from 1.1070 to 1.1125. It is a signal that the pair is overbought.
Daily chart
Read More: Technical Analysis
Traders gain from decline
On Monday, 58% of open EUR/USD position volume on the Swiss Foreign Exchange was short.
Traders had been short since Monday. Their short positions are most likely in the green.
Meanwhile, set up pending orders were neutral, as 52% of orders in the 100-pip range were to buy and 48% were to sell.