During Monday morning, the pair was testing the 1.0820 level. Given that the pair is pressured by the 55- and 100-hour SMAs, it is likely that some downside potential could prevail.
Economic Calendar Analysis
This week, monthly US inflation and retail sales data sets are bound to be cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
In the meantime, the German Preliminary GDP could cause a reaction on Friday at 06:00 GMT, despite causing no notable moves and being ignored during the last year.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair consolidated in the 1.0840 area. During today's morning, the pair was trading at 1.0820.Note that the exchange rate is pressured by the 55– and 100-hour SMAs near 1.0830. Thus, some downside potential could prevail in the market. In this case the rate could gain support from the weekly and monthly S1s in the 1.0747/1.0776 area.
If the given support levels hold, it is likely that a reversal north could occur in the short run. Meanwhile, it is unlikely that the currency pair could exceed the 1.0900 mark due to the resistance formed by the Fibo 23.60% and the monthly PP.
Hourly Chart
On the daily candle chart, the rate has bounced off the low level of April and March near the 1.0775 mark. This level strengthened the support of the monthly S1 simple pivot point.
Daily chart
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Traders remain short
Since Thursday's GMT trading hours, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders remained short despite the recent retracement back up.