On Tuesday morning the EUR/USD traded near the 1.1240 level.
Meanwhile, during the previous day's trading session the EUR/USD had reached a new high level, by reaching above the 1.1260 mark.
The European Common Currency appreciated against the US Dollar, following the US CPI data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate gained 13 pips or 0.11% right after the release. The Euro continued trading at the 1.1242 level against the US Dollar.
Bureau of Labor Statistics released the US CPI data, which came out worse-than-expected of 0.3% compared with expected 0.4%.
According to the release: "The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis after rising 0.4 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment."
Minor data for EUR/USD
During this week there will be a couple of macroeconomic events, which are notable enough to impact currency exchange rates.On Wednesday, Aussie traders have to watch out for the Australian Wage Price Index publication at 01:30 GMT. It is the Australian equivalent of the UK Average Earnings Index.
During the same day, at 06:00 GMT and at 09:00 GMT GDP data will be published in the European Union. Namely, at 06:00 GMT watch the German Preliminary GDP release and at 09:00 GMT the flash EU GDP will be out.
These data sets are not the ones that usually cause big moves. However, during the recent months we have seen changes in that. The EU data has resumed to cause moves on the EUR pairs.
Also on Wednesday, the Canadian CPI and US Retail Sales will be published at 12:30 GMT. The CPI caused moves of 23 to 61 pips since December on USD/CAD. Meanwhile, the US retail sales have created moves from 12 to 40 base points on EUR/USD.
Early on Thursday, at 01:30 GMT the official Australian employment change will be published. The data is expected to cause a minor impact. This event is the last notable of the week.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
EUR/USD hourly chart's review
On the hourly candle chart on Tuesday the EUR/USD was being support and slightly pushed upwards by the 55-hour simple moving average.The rate was expected to continue to push upwards, as it had no technical resistance as high as the 1.1270 level. At that level the rate would face the weekly R1 of the simple pivot points.
On the other hand, on Monday, the rate had shortly declined below the mentioned simple moving average. This indicates that it might fail at pushing the rate up.
Hourly Chart
On the daily candle chart, it could be seen that the resistance of the 55-day simple moving average at 1.1263 provided resistance and stopped the recent surge.
This level had become part of the resistance cluster that was forming in the range from 1.1260 to 1.1270.
Daily chart
On Monday morning the Swiss Foreign Exchange sentiment was 75% short.
By the middle of Tuesday's trading session the sentiment was 72% short. Namely, on the Swiss Foreign Exchange 72% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were slightly bearish. Namely, 53% of all orders were set to sell.