On Tuesday, the 55-hour simple moving average caught up with the EUR/USD currency exchange rate. The support of the SMA failed to push the rate up.
Due to that reason, by the middle of Tuesday's GMT trading hours, the rate was most likely set to decline to the support levels near 1.1300.
Economic Calendar Analysis
During the week there will be couple events that could impact the EUR/USD pair.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT. The event has caused minor moves from 6.8 to 11.00 pips.
On Thursday, March 12, the European Central Bank will make its rate announcement, as the Main Refinancing Rate and the Monetary Policy Statement will be published at 12:45.
However, since October 2019, the market has not reacted to this event. The EUR/USD moved from 3.0 to 5.9 pips.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair tried to surpass the resistance level formed by the Fibo 38.20% and the monthly R3 1.1475. During today's morning, the pair reversed south.It is likely that the exchange rate could be pressured by the 55-hour SMA near 1.1370 and trade downwards in the short term. In this case it is unlikely that the rate could decline below the Fibo 23.60% at 1.1202.
However, note that the currency pair could gain support from the monthly R2 and the 100-hour SMA at 1.1280. In this case the Euro could trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the it can be observed that the rate is overbought, as the daily simple moving averages were located below the 1.1100 level.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, the 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment declined to 71% short.