During Wednesday morning, the EUR/USD currency pair reached the upper boundary of the short-term descending channel at 1.0990.
If the given channel holds, a reversal south could occur in the nearest future. Otherwise, the pair could re-test the psychological level at 1.1000.
Economic Calendar Analysis
This week there are a couple of events scheduled, which could impact the EUR/USD.
Today, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 6.7 to 20.4 base points.
On Thursday, watch out for the ECB Monetary Policy Meeting Accounts at 11:30 GMT. In general, they have not caused sudden moves. Despite that the information revealed could break trends and create larger swings.
On the same day the US CPI will be released at 12:30 GMT. The event has caused moves from 13.3 to 26.9 pips since May. In addition, the reactions have been increasing each month.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair dropped to the support level formed by the 200-hour SMA and the weekly PP circa 1.0950. During today's morning, the pair raised to the 1.0980 mark.Note that the exchange rate was trading near the upper boundary of the short-term descending channel at 1.0990. Thus, it is likely that a reversal south could occur in the nearest future, and the rate could target the lower channel line located circa 1.0940.
Otherwise, the pair could gain support of the 55– and 100-hour SMAs, currently located circa 1.0970. In this case the Euro could continue to extend gains against the Greenback. Important level to look out for is the psychological level at 1.1000.
Hourly Chart
On the daily candle chart, the rate has surged in the borders of a channel down pattern. The upper trend line of the pattern is located close to 1.1000.
Meanwhile, the 55-day simple moving average was sharply approaching the currency rate and could reach it during the week.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday morning, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bearish, as 57% of orders in the 100-pip range were set to sell and 43% were to buy.
The orders also had not changed since Monday.