During today's morning, the pair was testing the lower channel line. From a theoretical point of view, it is likely that a reversal south could occur.
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, the US Retail Sales on Friday is 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 Wednesday, the EUR/USD currency pair re-tested the upper boundary of the short-term ascending channel. During today's morning, the pair was testing the lower channel line near 1.0800.From a theoretical point of view, it is likely that a reversal north could occur in the nearest future, and the exchange rate could target the upper channel line near 1.0885.
Note that the rate would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.0830/1.0862 range. If the given resistance holds, it is likely that the pair could trade along the lower channel line.
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 1.0955/1.1030 range.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, 67% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.