Next target for the surge of the EUR/USD was a pivot point at 1.1246.
Economic Calendar Analysis
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
On Thursday, June 4, the European Central Bank is set to issue the Monetary Policy Statement and reveal its Main Refinancing Rate at 11:45 GMT.
The week will end with the US Employment data set release on Friday 12:30 GMT.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair raised to the resistance level formed by the Fibo 38.20% and the weekly R1 at 1.1200. During today's morning, the pair surpassed the given level.It is likely that some upside potential could prevail in the market. Note that the exchange rate would have to surpass the monthly R1 at 1.1246.
If the given resistance holds, it is likely that a reversal south could occur. In this case the rate could gain support from the 55– and 100-hour SMAs in the 1.1120/1.1155 range. Otherwise, it is likely that the currency pair could target the weekly R2, located at 1.1316.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 61.80% Fibo at 1.1184. In general, the rate has no additional resistance on the chart.
Daily chart
Read More: Technical Analysis
Strong short sentiment remains
On Friday, on the Swiss Foreign Exchange 75% of all EUR/USD open position volume was in short positions.
On Monday, the sentiment was 72% short. Since the middle of Tuesday's GMT trading hours, 74% of open volume was bearish.
Traders remain short despite the surge.