On Wednesday morning, the EUR/USD currency pair was testing the support provided by the 55- and 100-hour moving averages circa 1.1080.
If the given moving averages hold, it is likely that the pair could try to reach the psychological level at 1.1100.Economic Calendar Analysis
This week there are a couple of events that could impact the EUR/USD rate.
Today, at 13:30 GMT the US CPI and Core CPI are scheduled to be published. Since July this event has caused moves from 7.1 to 26.9 pips. The lowest reactions were in October and November.
Moreover, the US Federal Reserve would announce its interest rate at 19:00 GMT. The event has created moves from 15.6 to 57.8 pips.
On Thursday, the European Central Bank is set to make its rate announcement at 12:45 GMT. The EUR/USD has moved from 5.9 to 57.6 on the announcement.
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT. A move from 5.3 to 22.2 pips can be expected.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 09.12-13.12 Event Historical Reactions
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair failed to reach the psychological level at 1.1100. During today's morning, the pair was testing the support level formed by the 100-hour SMA at 1.1081.If the given support holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate could exceed the given psychological level.
On the other hand, some volatility could occur on the market, as the FOMC Statement release will happen today at 19:00 GMT.
From theoretical perspective, it is unlikely that the rate could drop lower than the support level formed by the weekly and monthly PPs at 1.1060.
Hourly Chart
On the daily candle chart, the rate trades above the support of the 55 and 100-day simple moving averages, which are located at 1.1067 and 1.1046. These SMAs are expected to push the rate up to the resistance of the 200-day SMA near 1.1150.
Daily chart
Read More: Technical Analysis
Traders remain short on EUR/USD
Since Monday, on the Swiss Foreign Exchange 69% of open EUR/USD position volume has been in short positions.
Meanwhile, pending trade orders were bearish, as 73% of orders in the 100-pip range were to sell and 27% were to buy.