The EUR/USD bounced off the resistance of the 1.1100 level late on Monday. This resulted in a decline, which by the middle of Tuesday's London trading session had reached below the 1.1080 mark.
In general, it was expected that the decline would continue, as the rate had removed its oversold pressure and had no technical support as low as 1.1045.
Economic Calendar Analysis
This week the EUR/USD is bound to be affected by US data and an expected rate cut.
On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. This event can be ignored, as it has been creating volatility below ten pips since October 2018.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the EUR/USD charts from 11.7 to 35.3 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 28.6 to 57.8 base points since January 2019.
On Friday, November 1, the US Employment data set will be in focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 14.5 to 48.0 pips since June 2019.
At the same day, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 12.7 to 37.2 base points since June of this year.
For more detailed information take a look at the 28.10.-01.11. Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
EUR/USD hourly chart's review
By the middle of Tuesday's trading session, the EUR/USD had reached below the 1.1080 mark.In general, the rate was expected to decline, as with the recent surge the rate had removed the oversold pressure from the rate and there were no close by technical support levels. The most close by support was located near the 1.1045 mark.
Meanwhile, take into account that the rate could pause its decline due to either fundamental reasons or find support in the 1.1070 level, which had impacted the rate at the middle of October.
Hourly Chart
On the daily candle chart, take into account that the rate is being supported at the 1.1040 level by the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
On Tuesday, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bullish, as 66% of orders in the 100-pip range were set to buy and 34% were to sell.
The sentiment numbers almost had not changed since Friday.