The EUR/USD plummeted on Monday, as soon as the 55-hour SMA failed to provide support. By the middle of Tuesday's London trading, the currency exchange rate had found support in the 200-hour SMA at 1.1125.
Although, the SMA might not cause a surge, as the rate faces the resistance of a weekly PP at 1.1139 and the 55 and 100-hour simple moving averages were providing resistance near 1.1150.Economic Calendar Analysis
This week there is only one event scheduled that could impact the EUR/USD rate.
On Tuesday, the US ISM Non-Manufacturing PMI is set to be released at 15:00 GMT. This event has caused moves from 9.7 to 36.5 pips since October 2018.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
Read More: 04.11-08.11 Event Historical Reactions
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair declined to the support level formed by the 200-hour SMA at 1.1125. During today's morning, the pair was testing the given support.If the given moving average holds, it is likely that a reversal north could occur in the nearest future. However, note that the exchange rate would have to surpass the resistance cluster formed by the 55- and 100-hour SMAs, as well the weekly PP in the 1.1139/1.1152 area. A possible upside target is the 1.1165/1.1180 range.
If the given support level does not hold, it is likely that the Euro could continue to depreciate against the US Dollar within the following trading session. In this case, the currency pair could face support of the weekly S1 at the 1.1102 mark.
Hourly Chart
On the daily candle chart, the pair has the support of the 100-day simple moving average, which is located at 1.1122.
Meanwhile, the 200-day SMA was providing resistance at the 1.1200 level. In addition, at that level a 61.80% Fibonacci retracement level was located at.
The 55-day SMA was providing support at the 1.1040 level. It could be reached, if the rate plummets below all of the technical support levels that are located just above 1.1100.
Daily chart
Read More: Technical Analysis
Traders are short on EUR/USD
Since Monday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were to buy, as 55% of orders in the 100-pip range were to buy and 45% were to sell. Previously, the orders were 61% bearish.