In theory, the rate should decline in the borders of the pattern. Although, it would face various support levels that could keep the pair up.
Economic Calendar Analysis
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published. This event has caused moves on the EUR/USD from 7.0 to 23.8 pips. Note that the largest moves were the most recent ones.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published. A EUR/USD move from 8.9 to 26.5 pips is possible.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
The rate has close by the support of the weekly R1 simple pivot point at 1.1963. If the pair passes the support of this level, it should aim at the 55-hour simple moving average that was located near 1.1920.Afterwards, below the 55-hour SMA, a cluster of technical levels was located from 1.1850 to 1.1875. This level could be reached, if the 55-hour SMA is passed.
Meanwhile, the rate could extends its surge. It could do so by passing the 1.2000 level. In this case, note the resistance levels at 1.2020 and 1.2037.
Hourly Chart
On the daily candle chart, the pair has reached a new high level in the borders of a channel up pattern. Previously, a decline to the support of the large scale pattern and a 38.20% Fibonacci retracement level near 1.1710.
Meanwhile, on the daily candle chart, note the additional resistance of the 23.60% Fibonacci retracement level at 1.2030.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, on the Swiss Foreign Exchange 69% of all EUR/USD open position volume was in short positions.
On Tuesday, the sentiment was 68% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 54% of all cases.