The EUR/USD pushed through the 1.0875/1.0885 range's resistance, the weekly R1 simple pivot point at 1.0893 and the 1.0900 mark. The surge stopped at the 1.0915 level. A closer look at the rate reveals that an upper trend line of a channel up pattern is located at that level. This trend line held and caused a retracement down to the 1.0860 level.
Economic Calendar Analysis
This week, the rate is set to be moved by two major events.
First of all, the ECB Rate announcement will move the Euro on Thursday at 12:15 GMT. In general, the markets expect the ECB to cut interest rates by 0.25%. A rate cut should weaken the Euro and cause a decline of the EUR/USD.
On Friday, at 12:30 GMT, the US monthly employment data sets will be published. The monthly data release consists of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate. The USD is surely going to adjust to the new data.
EUR/USD hourly chart analysis
In the near term future, the rate is expected to look for support in the lower trend line of the channel up pattern and the 100 and 200-hour simple moving averages. Below these levels, support could be found in the weekly simple pivot point at 1.0840.On the other hand, a recovery of the Euro against the US Dollar might encounter resistance once again in the 1.0875/1.0885 range, the weekly R1 and the 1.0900 level, prior to reaching new highs.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate is above the resistance of the upper trend line of the pattern that captured the move of the last months. Moreover, the 50, 100 and 200-day simple moving averages were broken.Most recently, the 100 and 200-day simple moving averages appear to have turned into support near the 1.0800 mark.
Daily chart
Read More: Technical Analysis
Dukascopy traders are short
On Monday, traders were 55% short on the pair. That proportion of all open Swiss Foreign Exchange positions was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the pair were 53% to buy.
On Tuesday, positions were 56% short and orders were 55% to buy.