Economic Calendar Analysis
This week, the rate is set to be moved by two major events.
First of all, the ECB Rate announcement will move the Euro on Thursday at 12:15 GMT. In general, the markets expect the ECB to cut interest rates by 0.25%. A rate cut should weaken the Euro and cause a decline of the EUR/USD.
On Friday, at 12:30 GMT, the US monthly employment data sets will be published. The monthly data release consists of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate. The USD is surely going to adjust to the new data.
EUR/USD hourly chart analysis
If the pair recovers, it might face resistance combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.0835/1.0850. Afterwards, a move above the 1.0875/1.0885 range and the weekly R1 simple pivot point at 1.0885 is expected to encounter resistance in the 1.0900 mark. Higher above, the weekly R2 at 1.0925 could act as resistance.In the case of a further decline, note that the 1.0820 and 1.0810 levels have acted as support. In addition, the weekly S1 might stop a decline at 1.0806. If these levels fail, the 1.0800 could once again come into play.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate is above the resistance of the upper trend line of the pattern that captured the move of the last months. Moreover, the 50, 100 and 200-day simple moving averages were broken.Most recently, the 100 and 200-day simple moving averages appear to have turned into support near the 1.0800 mark.
Daily chart
Read More: Technical Analysis
Dukascopy traders go short
On Monday, traders were 55% short on the pair. That proportion of all open Swiss Foreign Exchange positions was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the pair were 53% to buy.
Last Wednesday, 52% were in short positions.