The decline of the EUR/USD resumed after a short surge on Monday. During the early Tuesday trading hours the rate had reached down to the support of the weekly S3 at 1.1275.
By the middle of the day, the rate had started a recovery, which was expected to reach the 1.1300 level.
The European Common Currency depreciated against the US Dollar, following the US ISM Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD exchange currency rate lost 13 pips or 0.12% right after the release. The Euro continued trading at the 1.1330 level against the Greenback.
Institute for Supply Management released the US ISM Manufacturing PMI data , which came out better-than-expected of 51.7 compared with the forecast of 51.3.
According to the official release: "Respondents expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed. Of the 18 manufacturing industries, 12 reported growth in June."
ISM data and employment week
On Wednesday, the ISM Non-Manufacturing PMI will be published at 14:00 GMT. The data release has caused moves from 7.5 to 18.6 pips on the EUR/USD charts.
For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
On the EUR/USD charts this event has caused moves in a range from 13.3 to 48 pips since February.
EUR/USD hourly chart's review
It can be observed on the hourly candle chart that the support of the drawn pattern was broken. It occurred due to another fundamental push of the USD.The decline ended on Tuesday London trading morning at 1.1275, where a weekly third support of the simple pivot points is located at. From that level a recovery started, which was expected to reach for the resistance of the 1.1300 level and the technical levels just above it.
On the other hand, the rate might end its consolidation by trading sideways, and by the time the US markets open, another announcement might be the cause of another drop.
Hourly Chart
On the daily candle chart, the rate has made a decline in accordance with a large scale ascending pattern. Namely, it bounced off its upper trend line last week and has begun to move to the lower trend line of the pattern.
In addition, as it was described on Monday, the 200-day simple moving average provided resistance that pushed the rate down.
Next up below the rate on the chart one can observe the 100-day simple moving average at 1.1264. This level is expected to provide support in the case that the weekly S3 at 1.1275 gets passed.
Daily chart
Since last Monday, most open EUR/USD position volume was in short positions. Namely, 72% of open volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 71% short.
Traders had stuck to their short positions for a whole week. In theory, traders, who are short since June 21 are in the green.
Meanwhile, on Tuesday, trader set up pending orders in 100-pip range around the pair were neutral, as 53% of all orders were set to sell and 47% were to buy.