On Wednesday, the pair had once again reached the support of the 1.1720 level.
Economic Calendar Analysis
On Wednesday, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair tested the resistance formed by the 100– and 200-hour SMAs, as well the weekly PP in the 1.1800 area. Afterwards, it retreated to find support in the area near 1.1720. It resulted in a surge, which by the middle of Wednesday was heading back to the 1.1800 level.In theory, the resistance at 1.1800 could hold and force the rate into another attempt to pass the support of the 1.1720 zone and the 61.80% Fibonacci retracement level at 1.1707.
On the other hand, it is possible that the pair manages to pass the 1.1800 resistance. In this case scenario, the cluster of resistances at 1.1900 should be targeted.
Hourly Chart
On the daily candle chart, the pair has bounced off the upper trend line of the channel up pattern, which had been guiding its surge since the second part of April.
If the pair respects the pattern, it could reach for its lower trend line. However, in the meantime, a 38.20% Fibo could provide support near 1.1700. These facts combined signal that the rate would trade sideways until September.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume was in short positions.
The sentiment increased to 66% short on Wednesday.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 57% of all cases.
The orders were 56% to buy on Tuesday.