The EUR/USD has declined to the support range at 1.0720/1.0740. Future scenarios are based on whether the range holds.
Economic Calendar Analysis
This week, watch out for a possible move caused by the US weekly Unemployment claims on Thursday at 13:30 GMT. Besides that, the second week of February has nothing notable scheduled that could impact the financial markets.
EUR/USD hourly chart analysis
A recovery of the Euro against the US Dollar is set to face the 1.0760 level and the 50-hour simple moving average. Higher above, note the 1.0800 mark and the 100-hour SMA. Above the round exchange rate, the combination of the 200-hour SMA and the weekly simple pivot point could turn into resistance at 1.0820.On the other hand, a decline of the currency pair below the support range is expected to look for support in the combination of the 1.0700 mark, the weekly S2 at 1.0703 and the trend line that has been impacting the rate. Further below, take into account the weekly S3 simple pivot point at 1.0863.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the assumed new channel down pattern has been broken. The fundamental events provided enough momentum to pass below the 100 and 200-day moving averages and break the pattern.In regards to the future, note that the 1.0630/1.0700 range could act as support, before the pair reaches the October low level at 1.0500.
Daily chart
Read More: Technical Analysis
Traders are long
On Tuesday, traders were 55% long, as that proportion of all open position volume was in long positions.
Meanwhile, pending orders in the 100-pip range around the pair were 60% to buy.