The decline of the EUR/USD reached the 1.1300 level, as expected. Moreover, the rate reached the monthly R2 simple pivot point at 1.1285.
In regards to the near term future, the rate was expected to face the resistance of the 55-hour simple moving average.
Economic Calendar Analysis
During the week there will be couple events that could impact the EUR/USD pair.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT. The event has caused minor moves from 6.8 to 11.00 pips.
On Thursday, March 12, the European Central Bank will make its rate announcement, as the Main Refinancing Rate and the Monetary Policy Statement will be published at 12:45.
However, since October 2019, the market has not reacted to this event. The EUR/USD moved from 3.0 to 5.9 pips.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair re-tested the support level—the monthly R2 at 1.1285. During today's morning, the pair was trading near the given level.Note that the exchange rate could be pushed down by the 55-hour SMA to the support area formed by the 200-hour SMA, the weekly PP, the monthly R1 and the Fibo 23.60% in the 1.1157/1.1226 area.
However, if the monthly R2 holds, it is likely that the Euro could consolidate against the US Dollar in the short run. Also, it is unlikely that bulls could prevail in the market, and the pair could exceed the Fibo 38.20% at 1.1459.
Hourly Chart
On the daily candle chart, it can be observed that the rate is overbought, as the daily simple moving averages were located near the 1.1100 level.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, the 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had been at 72% short since Friday. However, there was one exception. On Tuesday, the sentiment had dipped to 71% short.