Economic Calendar Analysis
This week, notable events are over. Next week, economic data could start impacting the markets on Tuesday.
On Tuesday, the Markit institute will release its Purchasing Managers Index results. Despite being called an index, it is actually a survey of managers. Two sectors are surveyed. Namely, the Services and Manufacturing firms are asked how they are seeing the future. A reading above 50.0 shows growth, but a reading below 50.0 equals expectations of a sector decline. However, the market reacts to whether the reading is above or below the expected survey result.
From 07:15 GMT up to 08:00 GMT, the European Union country survey results will be published. Among them, the most important are the French and German results at 07:15 and 07:30 GMT. They are set to impact the value of the Euro.
At 13:45 GMT, all of financial markets could move due to the publication of the United States Manufacturing and Services sectors Purchasing Managers Indices.
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
EUR/USD hourly chart analysis
An extension of the ongoing surge is set to face the combination of the 1.0700 mark, the weekly simple pivot point at 1.0715 and the 200-hour simple moving average. Higher above, the 1.0800 mark and the weekly R1 simple pivot point are expected to act as resistance.In the case of a Euro decline against the US Dollar, the rate could look for support in the 50 and 100-hour simple moving average near 1.0650. Further below, the 1.0600 mark is set to once again impact the rate. If the 1.0600 fails, the descending support trend line might slow down the rate, before it reaches the 1.0550 level and the weekly S1 simple pivot point.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has reached below the support of the 1.0635/1.0700 range. It could be the case that the range turns into resistance, if the pair fails to reach above 1.0700.A resumption of the pair would result in the pair looking for support in the lower trend line of a channel down pattern and the 1.0520/1.0535 range that captures an early 2023 low level range.
Daily chart
Read More: Technical Analysis
Traders remain long
On Monday, traders were 65% bullish as that amount of open position volume was in long positions.
Meanwhile, pending orders in the 100-pip range around the pair were 53% to sell.
On Thursday, traders were still long. 64% of open positions were long and pending orders 70% to sell.
Traders had held their long positions throughout the decline and sat on losses.