A surge followed this event. By mid-day, the rate had reached a 23.60% Fibonacci retracement level at 1.0886
Economic Calendar Analysis
This week is set to start with the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers about a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
The FOMC is set to be followed by the European Central Bank on Thursday, at 11:45 GMT. The ECB is set to make a rate publication and release its Monetary Policy Statement.
In addition, note the US Unemployment Claims on Thursday at 12:30 GMT. Moreover, the US ISM Manufacturing PMI is scheduled to be published on Friday at 14:00 GMT.
EUR/USD hourly chart's review
During today's morning, the pair skyrocketed to the Fibo 23.60% at 1.0868.If the given level holds, it is likely that a reversal south could occur in the nearest future. In this case the exchange rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.0816/1.0840 area.
On the other hand, it is likely that the rate could continue to trade upwards in the short run. However, note that the pair would have to exceed the weekly R1 at 1.0905.
Hourly Chart
On the daily candle chart, the pair could find additional resistance in the 55-day simple moving average, which was located near the 1.0950 mark.
Meanwhile, by examining the chart more closely, it was discovered on Tuesday that the rate passed the support of the 1.0780 level and had actually bounced off the 1.0750 mark.
Daily chart
Read More: Technical Analysis
Traders remain short
Despite the rebound of the rate, traders continue to short the EUR/USD.
On Monday, 71% of open volume was being held by bears.
By the middle of the day's GMT trading hours, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.