On Wednesday morning, the EUR/USD currency pair was testing the support level formed by the monthly PP at 1.0968.
Given that the pair remains to be under pressure of the 55- and 100-hour SMAs, it is likely that some downside potential could prevail.
Economic Calendar Analysis
This week there are no events left that could impact the EUR/USD pair.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair declined to the support level—the monthly PP at 1.0968. During today's morning, the pair was testing the given level.If the given support holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate could face the resistance cluster formed by the 55– and 100-hour SMAs, as well the monthly R1 in the 1.1090/1.1157 area.
On the other hand, the currency pair could trade sideways near the given support level in the short term. Also, it is unlikely that bears could prevail, and the pair could decline below the Fibo 23.60% at 1.0886.
Hourly Chart
On the daily candle chart, the pair surpassed the support formed by the 55-, 100- and 200-day moving averages. However, the pair faced the support level – the monthly PP at 1.0968.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.