Theoretically, it is likely that a reversal south could occur, as the pair could enter the overbought area.
Economic Calendar Analysis
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair raised to the 1.0995 level. During today's morning, the pair declined below 1.0960.It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs near 1.0930 and reverse north in the short term. Note that the nearest support level—the weekly R1, is located at 1.1010.
However, if the given support does not hold, it is likely that some downside potential could prevail in the market. Note that the pair could gain support from the 200-hour SMA, the weekly and monthly PPs, as well the Fibo 23.60% in the 1.0886/1.0915 range.
Hourly Chart
On the daily candle chart, the rate is pressured by the 55-, 100- and 200-day simple moving average in the 1.1000 area.
In addition, Dukascopy Analytics spotted that there is a supporting trend line that has kept the rate up since late March.
Daily chart
Read More: Technical Analysis
Traders go short on EUR/USD
On Wednesday, on the Swiss Foreign Exchange 74% of all EUR/USD open position volume was in short positions.