It is likely that the pair could consolidate within the following trading session.
Economic Calendar Analysis
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips. br>
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair declined to the support level—the Fibo 23.60% and the 200-hour SMA at 1.0886. During today's morning, the pair pierced the given support.It is likely that the exchange rate could remain under pressure of the weekly and monthly PPs at 1.0908. Thus, some downside potential could prevail in the market. Note that the nearest support level—the weekly S1, is located at 1.0801.
On the other hand, it is likely that a reversal north could occur. In this case the rate could face the resistance formed by the 55– and 100-hour moving averages near 1.0930. If the given resistance holds, the pair could consolidate.
Hourly Chart
On the daily candle chart, the rate has bounced off the resistance cluster formed by the 55-, 100- and 200-day simple moving average in the 1.1000 area.
In addition, Dukascopy Analytics spotted that there is a supporting trend line that has kept the rate up since late March.
Daily chart
Read More: Technical Analysis
Short sentiment continues to grow
On Monday, on the Swiss Foreign Exchange 74% of all EUR/USD open position volume was in short positions.