In general, the rate was expected to continue the decline sooner or later to support levels below 1.1070.
Economic Calendar Analysis
Throughout the week releases from the European Union will be published.
On Thursday, the European Central Bank will announce its Main Refinancing Rate at 12:45 GMT. Also, the Monetary Policy Statement will be published.
On Friday, the German Flash Manufacturing and Services PMIs survey results will be published at 8:30 GMT.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 20.01-24.01 Event Historical Reactions
EUR/USD hourly chart's review
The EUR/USD plummeted on Friday from the simple moving averages near 1.1130 to the 1.1090 level. On Monday, the currency exchange rate reached below the 1.1090 level.In general, the rate was expected to continue to decline, as it had no technical support as low as the monthly simple pivot point at 1.1066 and the weekly S1 pivot point at 1.1061.
On the other hand, the recent sharp decline has left far above the rate the simple moving averages. It is a signal that the rate is oversold and should consolidate by retracing back up or trading sideways.
Hourly Chart
On the daily candle chart, the pair has passed the support of the 55-day SMA and the lower trend line of the channel up pattern, which has guided the rate since September.
In the meantime, take into account that near the pivot point at 1.1065 the 100-day simple moving average is also providing support.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Friday, 62% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's London trading hours, the sentiment was 60% short.
Meanwhile, set up pending orders were neutral, as 52% of orders in the 100-pip range were to buy and 48% were to sell.
Previously, the orders were 67% short.