On Monday, the EUR/USD was looking for support, as it had passed the monthly pivot point, which kept the rate up on Friday.
In general, the pair had two possible future scenarios.
FOMC on Wednesday
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time. Last release caused a 53.6-pip move.
EUR/USD hourly chart's review
On Monday morning, the EUR/USD exchange rate declined below the pivot point that is located at the 1.1069 level. Although, the rate still faced various support levels, which could cause a continuation of a surge.The currency exchange rate was set to look for technical support in the 55, 100 and 200-hour simple moving averages that are located from 1.1038 up to 1.1060. In addition, note that at 1.1038 this week's pivot point is located at.
It is expected that the combination of these technical levels could push the EUR/USD up. In that case the rate would most likely pass the pivot point at 1.1069 and aim at the 1.1150 level.
On the other hand, a decline below the described support levels could cause a drop down to the 1.1000 mark.
Hourly Chart
On the daily candle chart, the rate has bounced off the resistance of a channel down pattern. Take into account that the upper trend line of the pattern is expected to continue to provide resistance.
Daily chart
Read More: Technical Analysis
Traders increase short position volume
On Friday morning, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had become 68% short by the middle of Monday's London trading.
Meanwhile, pending trade orders were neutral, as 51% of orders in 100 pips range around the current rate were to sell and 49% were to buy.
Previously, the orders were 69% bearish.