In the future, the pair was expected to either trade sideways or decline to 1.1200.
Economic Calendar Analysis
In regards to the EUR/USD during the week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
On Tuesday, Markit is set to release the German Flash Manufacturing and Services PMI survey results at 7:15 GMT. Meanwhile, the US Flash Manufacturing PMI survey results will be released at 13:45 GMT.
On Thursday, macroeconomic data set release from the US could impact the market. The US Durable Goods Orders, Final GDP and Unemployment Claims data are set to be published at 12:30 GMT.
Take a look at all of the historical reaction tables by clicking on the link below.
EUR/USD hourly chart's review
During early Monday's GMT trading hours, the EUR/USD currency exchange rate bounced off the support of the lower trend line of a descending pattern. It resulted in a surge, which by the middle of the day's trading had reached above 1.1220.In the near term future, the rate was expected to test the resistance cluster located from 1.1234 up to 1.1246. It consists of two pivot points and the 100-hour simple moving average. If this resistance cluster fails to keep the pair down, the rate would test a combination of the 200-hour SMA and the upper trend line of the descending pattern.
On the other hand, the rate could trade sideways between the mentioned resistance cluster and the support of the 55-hour SMA and a 38.20% Fibonacci retracement level at 1.1200.
Hourly Chart
On the daily candle chart, the EUR/USD currency pair has the additional support of a 61.80% Fibonacci retracement level at 1.1184.
In the meantime, the support of the daily simple moving averages was located near the 1.1000 level.
Daily chart
Read More: Technical Analysis
Short sentiment declines
On Monday, on the Swiss Foreign Exchange 70% of all EUR/USD open position volume was in short positions.
During Friday, the sentiment was 74% short. It could be concluded that some traders had taken profits from the previous decline.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bearish, as 56% of orders were to sell and 44% of orders were set to buy.
The orders were 60% to buy on Friday. They had been executed, as buy orders to cover short positions were used to take profits.