On Monday, the rate started the week's trading by fluctuating sideways near the 1.1820 mark.
Economic Calendar Analysis
The week's notable events are set to start on Tuesday. At 12:30 GMT, the US Consumer Price Index could cause a noteworthy move. In September and August this event caused a slight increase of volatility. The rate has moved 5.4 to 16.9 pips on the event.
On Wednesday, the US Producers Price Index is scheduled to be published at 12:30 GMT. The last release occurred during a major increase of volatility. The EUR/USD has moved 5.0 to 48.9 pips during the last five announcements. However, the September move of 48.9 was an anomaly.
Take into account that the September release occurred at the start of a ECB press conference and Unemployment Claims release. The large move most likely was caused by a combination of factors not the PPI on its own.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. The EUR/USD has started to ignore this release since the middle of September. Since then, the publication causes a move of just around ten pips.
On Friday, the US Retail Sales data is capable of causing a slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The EUR/USD has moved from 7.6 to 19.7 pips on the release.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Monday morning, the EUR/USD traded near the 1.1820 level. However, as it had bounced off the upper trend line of a channel up pattern, it was expected to decline.The target of a decline would be the technical support levels that are located from the 1.1790 to 1.1776 level. In that range there are located the weekly and monthly simple pivot points and the 55 and 100-hour simple moving averages.
If the rate passes these support levels, it could then reach for the combination of the lower trend line of the channel up pattern and the 200-hour simple moving average near 1.1775.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average, which on Monday was located at 1.1800.
The simple moving average could provide support to the currency exchange rate.
Daily chart
Read More: Technical Analysis
Sentiment is unchanged
Since Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 58% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 68% to sell the pair.