On Tuesday morning, the EUR/USD currency pair declined to the lower boundary of the short-term descending channel.
If the given trend holds, it is likely that a reversal north could occur.
Economic Calendar Analysis
Today, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair tried to surpass the Fibo 38.20% at 1.1200. During today's morning, the pair declined to the 1.1100 level.From a theoretical perspective, it is likely that the exchange rate could re-test the lower boundary of the short-term descending channel near 1.1050. If the given trend holds, a reversal north could follow.
Otherwise, it is likely that the Euro could continue to trade downwards against the US Dollar in the short term. In this case the currency pair could gain support from the monthly PP and the weekly S1 in the 1.0950.
Hourly Chart
On the daily candle chart, the rate no longer is overbought, as it has retraced back down to the daily simple moving averages. Since Thursday, the SMAs began to provide support to the rate near the 1.1050 level.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Tuesday, 75% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.