On Tuesday, the EUR/USD did not drop to the 200-hour SMA. Instead, it found support in the round level of 1.0950. Afterwards, the pair surged up to the resistance of the 55 and 100-hour simple moving averages.
On Wednesday morning, the pair had bounced off the SMAs and was heading down to once again test the support of the 1.0950 level.
Economic Calendar Analysis
This week, data can be ignored, as the fundamental background created by the coronavirus has made the historical data useless in regards to future move forecasting.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
EUR/USD hourly chart's review
As the EUR/USD had bounced off the resistance of the 55 and 100-day SMAs, it approached the previously broken support of the weekly simple pivot point at 1.0977.The pivot point was expected to be passed. Afterwards, the currency exchange rate would test the 1.0950 level, which provided support on Tuesday. If this level does not hold, next up the 1.0900 mark should be reached. Note that the 1.0900 is strengthened by the 200-hour simple moving average.
On the other hand, any of the described support levels could force the pair into trading sideways until the 55 and 100-hour simple moving averages approach from above and push the rate down.
Hourly Chart
On the daily candle chart, EUR/USD has reached the daily simple moving averages. It has removed its oversold pressure. Due to that reason it can now once again decline.
Daily chart
On Monday, 73% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions. By the middle of Wednesday's GMT trading hours, the sentiment was 70% short.
The sentiment had remained almost unchanged since March 20. Traders remained short despite the recovery of the EUR/USD that has been occurring since that day.
During the last three trading sessions, they were recovering some of their losses.