The EUR/USD decline has continues. Namely, the currency exchange rate has reached the 1.1350 level on Tuesday morning.
The rate was expected to continue its decline as low as the levels between 1.1330 and 1.1340.
The European Single Currency appreciated against the US Dollar, following the US PPI and Core PPI release on Tuesday at 13:30 GMT. The EUR/USD exchange currency rate gained 5 pips or 0.05% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1440 area against the US Dollar.
The Bureau of Labor Statistics released US PPI data lower-than-expected of negative 0.2% compared with forecasted 0.01%. Note, that the US Core PPI was released at the same time with the US PPI.
The Bureau of Labor Statistics said in a note, "Lower energy prices sent the producer price index (PPI) down 0.2% in December. Prices for services ticked down 0.1%, but are up 2.8% over the past year—the strongest pace this expansion. The sharp drop in oil prices over the fourth quarter has pulled down energy input costs for a second straight month."
Quiet week for fundamentals
As it is accustomed, the third week of the month is expected to be rather empty for macroeconomic data releases. Although, there are a couple of releases to look forward to this week.On Tuesday, the UK Average Earnings Index was published at 09:30 GMT. The results of the event can be seen by clicking the link below.
On Wednesday, look forward to the Canadian Retail Sales data release at 13:30 GMT. This event most likely will be the only one notable enough during the rest of the week to be traded by currency release traders.
On Thursday, main attention of fundamental event traders will be on the ECB Rate Announcement at 12:45 GMT. The volatility on the EUR charts usually increases during the ECB Press Conference, which will start at 13:30 GMT.
Meanwhile, oil traders will most likely catch a one percent move at 15:30 GMT. The data release has been providing moves of more than one percent during the last month and a half.
EUR/USD daily review
During the previous trading session, the European Single Currency trade at the 1.1360 level as it was predicted. On Monday morning, the rate was located at 1.1352.In regards to the near-term future, most likely, the currency exchange rate will depreciate towards the ascending small pattern line and the monthly S1 at the 1.1330 mark.
Besides, it is expected that the rate will bounce off the small pattern line to trade at the 1.1340 level during the trading session on Tuesday.
Hourly Chart
On the daily chart the ascending pattern can be observed more clearly. You can see that the support line of the EUR/USD is based on three previous low levels that were touched during the end of 2018.
In accordance with the pattern the rate is expected the surge. Although, it will face a strong resistance level at the 1.1400 level, where three technical levels are located at.
Daily chart
On Tuesday, 57% of traders were short on the EUR/USD. Last week more than 60% of traders were shorting the pair.
Meanwhile, trader pending orders in the 100-pip range were neutral. They were 50/50 balanced.
During the last trading sessions some profit taking has been done by the short traders. However, most are still holding their short positions.