The EUR/USD has managed to pass the resistance of the hourly candle chart's simple moving averages. Namely, it has reached the resistance of the 1.1190 level on Monday morning.
In general, the rate is being squeezed in between technical support levels at 1.1165 and the resistances at 1.1180 and 1.1190.
The European Common Currency traded sideways against the US Dollar, following the US Prelim GDP data release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate gained 4 pips or 0.04% right after the release. The Euro continued trading at the 1.1140 level against the Greenback.
Bureau of Economic Analysis released the US Prelim GDP data, which came out in line with expectations of 3.1%.
According to the official release: "Today's estimate reflects downward revisions to nonresidential fixed investment and private inventory investment and upward revisions to exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, were revised up; the general picture of economic growth remains the same."
Minor data and ECB events
This week will have various data releases and monetary policy announcements occurring.
On Monday, the ISM Manufacturing PMI will be published at 14:00 GMT. The event has caused moves from 15 to 40 pips during 2019.
On Tuesday, big move catchers might want to watch the Reserve Bank of Australia Cash Rate announcement at 04:30 GMT. This event has caused moves from ten to sixty seven pips since December 2018.
On the same day, at 09:00 GMT the European CPIs are expected to cause a move of approximately of ten pips on the EUR/USD. It is unlikely that the move will be larger, but remember that anomalies occur all the time in Forex.
On Wednesday, a minor move might be caused by the ISM Non-Manufacturing PMI at 14:00 GMT.
On Thursday, all attention will be on the European Central Bank. At 11:45 GMT the Monetary Policy Statement will be published. On the release the EUR/USD has moved from 10 to 35 pips.
The event will be followed by the ECB press conference at 12:30 GMT. During the questions and answers session at the end of it the EUR is bound to make sharp moves.
At the same time the Canadian Trade Balance will be published. This event has caused moves from ten to sixty pips.
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
For more details watch the Economic Calendar Overview. Moreover, feel free to ask questions for details.
EUR/USD hourly chart's review
At the end of the previous week, the EUR/USD currency pair tested the upper boundary of the short-term descending channel at the 1.1190 mark.From a theoretical point of view, it is likely, that a reversal south should occur within the following trading hours. However, note, that the pair has to surpass the support cluster formed by the 55-, 100– and 200-hour SMAs, as well weekly PP in the 1.1150/1.1167 range.
If the given support holds, it is likely, that the exchange rate could try to breach the given channel north. If it does not hold, it is expected, that the rate could reach the Fibonacci 38.20% retracement at 1.1200.
Hourly Chart
On the daily candle chart, the trend lines of the larger scale dominant patterns can be observed.
In general, the rate continued to trade squeezed in between the trend lines of two massive scale channel down patterns.
The rate is expected to eventually break the support of the 1.1100 level where the lower trend line of the smaller pattern is located at.
Daily chart
On Friday, traders were short, as 64% of open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's trading session, the sentiment was 67% short.
In addition, trader set up pending orders in the 100-pip range were bearish. Namely, 61% of all orders were to sell.