Economic Calendar Analysis
This week, on Tuesday, watch the publication of the United States Producers Price Index at 12:30 GMT. This data release will provide an insight into US inflation situation. Note that producer price increases are usually passed on to consumers.
On Wednesday, the most important event of the week will take place. The US consumer inflation numbers will be released. The US Consumer Price Index data sets will be published. High inflation might reveal that the Fed can not cut interest rates and the Dollar would surge.
On Thursday, the US Retail Sales data will reveal whether total sales of consumer goods hae continued to increase. Note that higher retail sales might be due to higher prices not higher amount of goods sold.
EUR/USD hourly chart analysis
A move above the 1.0940/1.0950 zone is expected to encounter resistance in the weekly R1 simple pivot point at 1.0990. Higher above, the 1.1000 mark is bound to act as resistance.On the other hand, a decline of the Euro against the US Dollar is going to look for support in the 1.0870/1.0880 range and the 200-hour simple moving average near the 1.0900 mark. Further below, support is expected to be found at 1.0840/1.0850.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the recovery occured from the 100-day simple moving average. However, it is clear that fundamentals, not the SMA caused the move.The fundamental adjustment has moved the rate back to mid-July levels. In the near term future, the rate is expected to respect the round levels that have impacted it in the past.
In addition, we have spotted a channel up pattern that could guide the rate up to 1.1200.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, Dukascopy traders were shorting the pair, as 56% of all open position volume was in short positions.
Meanwhile, pending trader set up orders were set to sell. Namely, in the 100-point range around the pair 55% of orders were to sell and 45% were to buy.
On Monday, the open positons were 55% short and pending orders were 60% to sell.