During Monday morning, the pair was testing the given level. Given that the pair is pressured by the 55-, 100- and 200-hour SMAs, it is likely that some downside potential could prevail.
Economic Calendar Analysis
In regards to the EUR/USD during this week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
First of all, note the US Retail Sales on Tuesday at 12:30 GMT. This event has caused reactions from 7.6 to 29.2 pips.
On Thursday, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below ten pips. There were exceptions in May and June, when the EUR/USD moved respectively 11.2 and 22.2 pips.
Take a look at all of the historical reaction tables by clicking on the link below.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair breached the short-term channel south. During today's morning, the pair was testing the support level—the monthly R1 at 1.1246.If the given support holds, it is likely that some upside potential could occur in the short term. Meanwhile, note that the exchange rate could face the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in 1.1297/1.1320.
If the predetermined resistance holds, it is likely that a reversal south could occur, and the currency pair could target the Fibonacci 38.20% retracement at the 1.1200 mark.
Hourly Chart
On the daily candle chart, the rate has been consolidating by trading sideways between pivot points.
Daily chart
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Traders stick to short positions
On Friday, on the Swiss Foreign Exchange 75% of all EUR/USD open position volume was in short positions.
On Monday, the short sentiment declined to 73%.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were almost neutral, as 53% of orders were to sell and 47% of orders were set to buy.