During Monday morning, the EUR/USD currency pair was testing the resistance provided by the 100-hour SMA at 1.1126.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. US ISM Non-Manufacturing PMI
The European Common Currency traded sideways against the US Dollar, following the US ISM Non-Manufacturing PMI survey results release on Tuesday at 15:00 GMT. The EUR/USD exchange currency rate lost 7 pips or 0.06% right after the release. The Euro continued trading at the 1.1148 level against the Greenback.
The Institute for Supply Management (ISM) released the US ISM Non-Manufacturing survey results data, which came out better-than-expected of 55.0 compared with the forecast of 54.5.
The Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee Anthony Nieves commented: "According to the NMI, 11 non-manufacturing industries reported growth. The non-manufacturing sector had an uptick in growth in December. The respondents are positive about the potential resolution on tariffs. Capacity constraints have eased a bit; however, respondents continue to have difficulty with labor resources."
Economic Calendar Analysis
On Tuesday, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair reversed north from the lower boundary of the medium-term ascending channel at 1.1090. During today's morning, the pair was testing the resistance provided by the 100-hour SMA at 1.1126.From a theoretical point of view, it is likely that some upside potential could prevail in the market in the nearest future. However, note that the exchange rate would have to surpass the resistance cluster formed by the weekly and monthly PPs, as well the 200-hour SMA in the 1.1139/1.1156 area.
However, if the 100-hour SMA holds, it is likely that a reversal south could occur in the nearest future, and the currency pair could re-test the lower channel line. If the given channel does not hold, the pair could decline to the weekly S1 at 1.1072.
Hourly Chart
On the daily candle chart, the pair has support. It is kept up by the 55-day simple moving average and the lower trend line of the last five month surge.
It appears that the hourly and daily candle charts contradict one another. Due to that reason a squeeze between support and resistance levels is expected.
Daily chart
On Monday, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, set up pending orders were bearish, as 76% of orders in the 100-pip range were to sell and 24% were to buy.