In the meantime, the markets were expecting the US Consumer Price Index release on Wednesday at 12:30 GMT. In general, it was expected that the whole financial markets will remain near previous levels until the CPI is released. Afterwards, markets will adjust to the CPI.
Economic Calendar Analysis
This week, the top event for all markets will be the US Consumer Price Index and Core Consumer Price Index release on Wednesday at 12:30 GMT.
If the inflation data beats expectations, it is set to signal that the US Federal Reserve is pressured to hike interest rates and with it push the US Dollar's value up. On the other hand, a reveal that the inflation has slowed down might allow the central bank to go easier on the monetary tightening, which in turn would cause a decline of the USD.
On Thursday, at 12:30 GMT, the Producers Price Index and Core Producers Price Index will reveal inflation at the producer level. The PPI signals upcoming price increases or decreases at the consumer level.
EUR/USD hourly chart
A surge of the Euro against the USD, might encounter resistance in the weekly R1 simple pivot point at 1.0277, prior to approaching the 1.0300 mark. Higher above, note the 1.0350 level and the weekly R2 simple pivot point at 1.0371.Meanwhile, a potential decline of the currency exchange rate could look for support in the 1.0200 mark and the combination of the weekly simple pivot point together with the 50, 100 and 200-hour simple moving averages. Further below, note the weekly S1 simple pivot point at 1.0105 and the support zone at 1.0095/1.0115.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the currency exchange no longer appears to be heading to the 1.0350/1.0400 zone. Instead, the rebound from the 1.0000 mark has resulted in a sideways consolidation around the 1.0200 mark.Daily chart
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Traders are long
Prior to the CPI release, on the Swiss Foreign Exchange, trader open positions were bullish, as 56% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the Euro against the USD.
On Monday, traders were 59% long and orders were 53% to buy.