On Monday, the EUR/USD was declining in the aftermath of testing the 1.1150 level. By the middle of the day's GMT trading hours, the rate was set to reach the support of the 1.1050 mark.
Meanwhile, the 55-hour simple moving average was approaching the 1.1050 mark. Last week, the SMA caused a surge of the rate to the 1.1150 level.
Economic Calendar Analysis
This week, data can be ignored, as the fundamental background is so much changed that historical data does not matter.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
EUR/USD hourly chart's review
Note that the exchange rate could gain support from the 55-hour SMA near 1.1050, and re-test the 1.1150 resistance. If it does not hold, some upside potential could prevail in the market. In this case the rate would reach for the Fibo 38.20% at 1.1200.However, if the given resistance holds, it is likely that the Euro could consolidate by trading sideways against the Greenback in the short term. Also, it is unlikely that bears could prevail in the market, and the pair could decline below the Fibo 23.60% at 1.0886.
Hourly Chart
On the daily candle chart, EUR/USD has reached the daily simple moving averages. It has removed its oversold pressure.
Daily chart
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Short sentiment remains intact
On Monday, 73% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had remained almost unchanged since March 20.
Traders remain short despite the recovery of the EUR/USD that has been occurring since that day.