In the near term future, the rate's surge was expected to test the previous week's high level of 1.2310.
Economic Calendar Analysis
The first week of the year is bound to have notable data releases. The top among them are the release of the US Federal Open Markets Committee Meeting Minutes and the US monthly employment data sets.
On Tuesday, at 15:00 GMT, a minor move could be caused by the release of the US ISM Manufacturing PMI. The EUR/USD has moved 9.1 to 40.0 pips on the announcement since August.
On Wednesday, the mentioned FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 5.4 to 9.8 pips. Note that there was an anomaly of 23.2 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The releases have caused moves, respectively, from 11.1 to 23.8 and 10.4 to 16.9 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 15.7 to 28.9 pips since August.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
During Monday morning hours, the EUR/USD currency pair pierced the weekly R1 at 1.2291.It is likely that the exchange rate could face the resistance level at 1.2310 and reverse south in the short term. In this case the rate could decline to the support formed by the weekly PP and the 200-hour SMA in the 1.2230 area.
In the meantime, note that the currency pair could gain support from the 55– and 100-hour SMA in the 1.2260/1.2270 range. The pair could target the weekly R2 located at 1.2365.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern, which has been guiding the rate since the start of November.
Most recently, the pair reached a new high level by passing the previous December high level. In the meantime, note that the rate should continue its surge, as the resistance of the pattern was located near the 1.2450 mark.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, on the Swiss Foreign Exchange trader open positions were bearish, as 63% of open position volume was in short positions.
Note that since the December 23 the sentiment had been near the 60% short level.
Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the pair were 63% to sell the pair.