During Wednesday morning, the EUR/USD was trying to surpass the resistance level formed by the monthly R1 at 1.1045.
The pair could gain support of the 55- and 100-hour moving averages to breach the given resistance and extend gains.
Economic Calendar Analysis
This week one data release might impact the EUR/USD currency exchange rate. Although it is a minor one.
Today, the US Retail Sales and Core Retail Sales data will be published at 12:30 GMT. Since May 2019, the rate has caused moves on the EUR/USD charts from 9.0 to 24.3 base points.
Meanwhile, take into account that next week there will be other events, which are expected to cause larger reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair re-tested the lower boundary of the medium-term ascending channel at 1.0993. During today's morning, the pair was testing the resistance level—the monthly R1 at 1.1045.Note that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 1.1026. Thus, the rate could surpass the given resistance and target the 1.1070/1.080 area. If the given resistance holds, the rate could consolidate in the short run.
However, if the given moving averages do not hold, the Euro could depreciate against the US Dollar in the nearest future. In this case the pair could face support of the weekly PP at 1.1015.
Hourly Chart
On the daily candle chart, the pair has reached the resistance of the 55-day simple moving average. The SMA is both providing resistance and signaling that the EUR/USD is no longer oversold on the larger scale.
Daily chart
Read More: Technical Analysis
Traders sell the EUR/USD
On Wednesday, 69% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Previously, the sentiment was at 70%.
Meanwhile, pending trade orders were bearish, as 66% of orders in the 100-pip range were set to sell and 34% were to buy.