As expected, the EUR/USD reached the support levels that are located just above the 1.0880 mark.
On Tuesday morning, the EUR/USD had bounced off the support levels and was surging back up to the 55-hour simple moving average, which was located near 1.0920.
US Employment Data week
This week, there are a couple of US macroeconomic data releases, which might impact the EUR/USD.
On Tuesday, the US ISM Manufacturing PMI is set to be released at 14:00 GMT. The event has caused moves from 12.7 to 29 pips on the EUR/USD. Note that the largest reaction was on the September release.
On Wednesday, the ADP Non-Farm Employment Change is set to be published at 12:15 GMT. This release has lost its significance during the last year, as it has caused moves from 5.3 to 11.5 pips since October 2018.
A move below ten pips during the time-frame that Dukascopy Analytics measure to compare data releases occurs without any events. It is normal volatility.
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the EUR/USD from 7.5 to 18.6 pips since September 2018.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 13.3 to 48 pips on the EUR/USD since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
EUR/USD hourly chart's review
During the morning hours of Tuesday's London trading hours, the EUR/USD currency exchange rate bounced off the 1.0880 level and was heading to the resistance of the 55-hour simple moving average near 1.0920.In general, the rate is expected to get beaten down by the SMA and once more reach the 1.0880 level.
On the other hand, if the SMA fails to push the rate down, the 100-hour SMA that was located on Tuesday near 1.0930 would provide resistance.
Hourly Chart
On the daily candle chart, the rate continues its decline in the large channel down pattern.
Meanwhile, the daily simple moving averages have been left behind above the 1.1070 level. It indicates that the rate is oversold and it could trade sideways.
Sideways trading in the borders of the channel down pattern could occur until even October 21, as on that date the upper trend line of the pattern would reach the 1.0955 level.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Tuesday morning, 60% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bullish, as 64% of orders in the 100-pip range were set to buy and 36% were to sell.
Previously, the orders were 55% to buy.