During Wednesday morning, the EUR/USD currency pair was testing the support level formed by the weekly PP at 1.1112.
If the given support holds, a reversal north could occur soon. However, note that the pair would have to surpass the 55- and 100-hour SMAs.
Economic Calendar Analysis
This week there are couple events that could affect the EUR/USD pair.
On Thursday, October 24, the French Flash Services PMI survey results will be published at 7:15 GMT. Also, the German Flash Services and Manufacturing PMIs survey results will be published at 7:30 GMT.
At the same day, the ECB Monetary Policy Statement, as well the Main Refinancing Rate data releases will be published at 11:45 GMT.
Moreover, the US Durable Goods Orders data will be released at 12:30 GMT.
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 Euro depreciated slightly against the US Dollar. During today's morning, the EUR/USD was testing the support level formed by the weekly PP at 1.1112.Note that the exchange rate is pressured by the 55– and 100-hour moving averages, currently located circa 1.1140. Thus, the rate could surpass the given support and trade downwards. In this case, the rate could gain support of the 200-hour SMA.
However, if the given support level holds, it is likely that the currency pair could try to surpass the given resistance in the nearest future. If it does not hold, the pair could exceed the 1.1160 level within the following trading session.
Hourly Chart
On the daily candle chart, the pair has reached the resistance of the 100-day simple moving average. The SMA is both providing resistance and signalling 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, 73% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were slightly bullish, as 55% of orders in the 100-pip range were set to buy and 45% were to sell.