On Tuesday, the EUR/USD ended trading sideways between 1.1140 and 1.1160 levels. The ending of the sideways trading signalled that a surge was likely.
In the case of the exchange rate surging, the pair would reach for the resistance of the 1.1200 level, which stopped the last week's surge.Economic Calendar Analysis
This week, there is one scheduled event left, which could cause an increase of volatility in the EUR/USD.
On Friday, December 20, the US Final GDP data will be published at 13:30 GMT. The EUR/USD has moved from 5.2 to 26.4 pips on the release since September 2018.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
EUR/USD hourly chart's review
During the second part of Tuesday's London trading session, the EUR/USD had tested the high level of 1.1170 and retreated to the 55-hour SMA at 1.1144.In general, the rate was expected to make another attempt to surge, as soon as the support of the 100-hour SMA approaches from below. In that case the rate would eventually aim at the 1.1200 level, where psychological resistance is located. The 1.1200 level is also strengthened by the weekly R1 pivot point and a 38.20% Fibonacci retracement level.
On the other hand, take into account that the rate might trade sideways until the SMAs begin the push up and even retreat to the monthly pivot point at 1.1138.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of the 200-day moving average. The rate could gain support of the 55- and 100-day SMAs and breach the given resistance in the near future.
In regards to the longer term future, the rate could pass the 1.1200 level and surge up to the 1.1300 mark by the end of January.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
On Tuesday, 75% of open EUR/USD position volume was in short positions. As the rate surged, these positions suffered losses.
Meanwhile, pending trade orders were bearish, as 60% of orders in the 100-pip range were to sell and 40% were to buy.
The orders had not changed since Monday.