Since reaching the target, the rate has been consolidating by trading sideways below the 1.1950 level.
Economic Calendar Analysis
Despite the week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July, as the EUR/USD moved around ten pips during the announcement.
On Friday, watch out for the German PMI data at 07:30 GMT, as the EUR/USD rate could move more than ten pips.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
In the near term future, the rate is expected to trade sideways until it is approached by the 55-hour simple moving average. In theory, the SMA should push the rate through the resistance of the weekly R2 simple pivot point at 1.1960.If the rate passes the pivot point, the rate should continue to surge in the borders of the channel up pattern. On its way up it would first face the resistance of the 1.2000 level. If the 1.2000 fails, the 1.2050 could be reached.
On the other hand, the SMA could fail in pushing the rate higher. In this case scenario, the pair should continue to trade sideways until it would reach the lower trend line of the channel up pattern. In addition, a decline to the weekly R1 and the 100-hour SMA is slightly possible.
Hourly Chart
On the daily candle chart, the pair remains in a larger channel up pattern, which has guided the pair since the middle of April.
In the meantime, take into account that a 23.60% Fibonacci retracement level could provide resistance at the 1.2031 level.
Daily chart
Read More: Technical Analysis
Traders set up buy orders
Since Monday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume was in short positions.
The sentiment decreased to 64% short on Wednesday.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 57% of all cases.
Previously, the orders were 56% to sell.