The EUR/USD broke out of the squeeze between the hourly simple moving averages to the upside and touched the upper trend line of a descending channel pattern.
On Wednesday morning, the currency exchange rate bounced off the resistance and pierced the support of the 55 and 100-hour SMAs. With that the rate signalled that it is set to decline to the support levels that are located at 1.1015.
US PPI at 12:30 GMT
This week, there are couple events that could have an impact on the EUR/USD exchange rate.
On Wednesday, September 11, the US Producer Price Index data will be published at 12:30 GMT. Last release caused only a seven-pip move. However, this data release might cause a more significant market reaction.
On Thursday, September 12, the US Consumer Price Index data will be released at 12:30 GMT. Previous release caused a 23-pip move.
Meanwhile, on September 12, the ECB Monetary Policy Statement will be published at 11:45 GMT. On July 25, the event also caused a 23-pip move.
The week will end with the US Retail Sales release at 12:30 GMT on Friday, September 13. Last release caused almost a fifteen-pip move.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD bounced off the resistance of a channel down pattern. The event resulted in a decline, which pierced the support of the 55 and 100-hour simple moving averages at 1.1040.Due to that reason, the rate was expected to decline to the next close by support levels. Namely, the 200-hour SMA and the weekly simple pivot point were located at 1.1015.
On the other hand, the 1.1030 round level previously managed to reverse the rate's previous passing of the support of the two hourly SMAs. This level might force the rate into sideways trading.
Hourly Chart
On the daily candle chart, a new descending channel pattern has been added. It represents the rate's decline since June.
In general, the pattern is expected to provide resistance to the rate during the next couple of weeks.
Daily chart
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Traders remain short
Since Tuesday, 57% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bearish, as 63% of orders in 100 pips range around the current rate were to sell and 37% were to buy.