If the given moving averages hold, it is likely that some downside potential could prevail in the market.
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 Monday, the EUR/USD currency pair declined to the 1.0800 level. During today's morning, the pair reversed north.Note that the exchange rate faced the resistance formed by the 55– and 100-hour SMAs in the 1.0825 area. Thus, some downside potential could prevail in the market.
It is likely that the currency pair could gain support from the monthly S1 at 1.0776. If the given level holds, it is likely that the Euro could consolidate against the US Dollar. Otherwise, the pair could decline to the weekly S1 at 1.0747.
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.
Note that the pair is pressured by the 55-, 100- and 200-day moving averages in the 1.0950/1.1030 range.
Daily chart
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Traders remain short
On Tuesday, 69% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.