On Tuesday morning, the rate found support in the 1.1720 mark and began a surge.
Economic Calendar Analysis
On Tuesday, the US Core PPI and PPI data are going to be released at 12:30 GMT.
On Wednesday, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Tuesday morning, it was expected that the rate's surge could test the combined resistance of the weekly simple pivot point at 1.1806 and the hourly simple moving averages at 1.1816 and 1.1804.If the rate passes the resistance cluster, it could aim at the 1.1900 level.
On the other hand, the rate might bounce off the resistance and start a decline, which would one by one test various support levels. The first would be the 55-hour SMA at 1.1780. Afterwards, the 1.1720 and 1.1700 could provide support.
Hourly Chart
On the daily candle chart, the pair has bounced off the upper trend line of the channel up pattern, which had been guiding its surge since the second part of April.
If the pair respects the pattern, it could reach for its lower trend line. However, in the meantime, the 38.20% Fibo could provide support near 1.1700. These facts combined signal that the rate would trade sideways until September.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Friday, on the Swiss Foreign Exchange 65% of all EUR/USD open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 56% of all cases.
The orders were 68% to buy on Monday.