The EUR/USD has continued to decline. By the middle of Monday's trading it as expected to head for the 1.1325 level.
In the meantime, there were arguments that favoured possible sideways trading of the currency exchange rate.
Notable macroeconomic data releases start on Wednesday
This week is set to be the first one of the month. Due to that reason it is set to have important data releases occurring.
The notable data releases that Dukascopy Analytics will cover will start on Wednesday. At 13:30 GMT the Canadian Trade Balance will be published and cause a notable move on all CAD pairs.
Moreover, at 15:00 GMT the Bank of Canada will publish their Overnight Rate, which has on average caused moves around 80 base points on the USD/CAD.
On Thursday, all attention will be on the European Central Bank. The bank will publish its Main Refinancing Rate at 12:45 GMT and host a press conference at 13:30 GMT.
The rate announcement has become insignificant, as the ECB keeps their rate at 0.00%. Instead during the press conference the heads of the bank will reveal information about the ECB's asset buying program.
On Friday, Canada and the US will publish their monthly employment data sets. It has five important data sets impacting the USD/CAD. It is the most complicated one to work with, as each data set impacts the rate differently.
For more information watch the weekly calendar analysis stream on our YouTube channel.
Click Here: Economic Calendar Analysis
EUR/USD hourly chart's review
On Monday, the EUR/USD began the day's trading above the support of the various hourly simple moving averages. Although, it began to immediately decline.By the middle of the day's trading session the rate had fallen below the 1.1350 level and it was expected to continue its decline. Namely, the pair had no support as low as the weekly S1 at 1.1324.
On the other hand, the rate has already made a too sharp move downwards. Due to that reason it might first consolidate the decline by trading sideways.
Hourly Chart
On the daily chart additional information can be seen. Namely, the 55 and 100-day simple moving averages were located near the 1.1390 level. The two levels were providing resistance to the currency pair.
Daily chart
Read More: Technical Analysis
Short open position volume remains intact
On Monday, on the Swiss Foreign Exchange of the total open position volume 73% was short on EUR/USD.
In the meantime, some additional selling was expected. By the middle of day's trading 57% of trader set up pending orders in the 100-pip range were set to sell.