From a theoretical perspective, it is likely that the pair could reverse south from the upper channel line in the nearest future.
Economic Calendar Analysis
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
Expect PMIs from France, Germany, the Eurozone first from 7:15 to 08:00 GMT.
On the same day, at 13:45 the US PMIs will be released. A move on the EUR/USD from 8.8 to 21.1 pips has occurred on the release in the last half year. The largest moves were spotted in the previous three months.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
The EUR/USD currency pair has revealed a medium-term descending channel. Yesterday, the pair reversed north from the lower channel line at 1.1740.It is likely that the exchange rate could re-test the upper channel line located circa 1.1890 in the nearest future. If the given channel holds, it is likely that a reversal south could follow.
Meanwhile, note that the rate is supported by the 55-, 100– and 200-hour SMAs in the 1.1830 area. Thus, a breakout north could occur, and the pair could target the weekly R1 at 1.1926.
Hourly Chart
On the daily candle chart, the pair has been consolidating between the Fibonacci 61.80% retracement at 1.1707 and the 1.1955 level since the beginning of August.
In addition, note that the 1.1700 level was strengthened by the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, on the Swiss Foreign Exchange 53% of all EUR/USD open position volume was in short positions.
On Thursday, the sentiment was 52% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bearish, as 61% of orders were to sell.