In general, the rate was expected to recover and make another attempt to pass the resistance at 1.1040. In the meantime, take into account that the 1.1040 level was set to be strengthened by the 200-hour SMA.
Economic Calendar Analysis
Next week, as the first of the month, is bound to have monthly data releases.
Among them will be the US ISM Manufacturing and Non-Manufacturing Purchasing Managers Indices. These events are capable of causing moves of up to 37.0 pips.
Note that on Wednesday, at 13:15 GMT the ADP Non-Farm Employment Change is scheduled to be published. However, with an exception in December, the event has not caused an increase of volatility on USD pairs.
Last but not least, on Friday, at 13:30 GMT both Canada and US will release their employment data. The release will consist of two numbers from Canada and three from the US.
Data tables with the next week's event historical reactions have been published. Click on the name of the publication to view it.
Read More: 03.02-07.02 Event Historical Reactions
EUR/USD hourly chart's review
As described above, the EUR/USD is set to reach for the 1.1040 level. At that level the pair would meet with the 200-hour simple moving average.If the rate finds resistance at that level, it should trade sideways until the 55 and 100-hour SMAs move higher and push the rate through the resistance of the 1.1040.
In another case, the rate could break the resistance of the 1.1040 and aim at the pivot point that is located at the 1.1055 level.
Hourly Chart
On the daily candle chart, one can observe that the 1.1000 mark provided the needed support for a rebound.
In addition, take into account that the pair has no technical resistance on the daily candle chart as far as 1.1066 level. At that level the monthly S1 simple pivot point was providing resistance together with the 100-day simple moving average.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since the middle of Wednesday's GMT hours, 53% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, set up pending orders were neutral, as 51% of orders in the 100-pip range were to buy and 49% were to sell.