The currency exchange rate was expected to once again look for the support of the 38.20% Fibonacci retracement level. However, take into account that it was pierced on Tuesday.
Economic Calendar Analysis
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
On Wednesday, note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events. However, they have not caused an increase of volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
EUR/USD hourly chart's review
At mid-day on Wednesday, the pair was pushed down by the combined resistance of three hourly simple moving averages and the monthly simple pivot point at 1.1245.In regards to the future, the rate has reached the 38.20% Fibo at 1.1200, which could provide support. If this case scenario occurs, the rate would trade sideways above the 1.1200 level or surge back up to the mentioned resistance levels.
On the other hand, the support could fail. In this case the pair would have no technical support as low as the monthly S1 simple pivot point at 1.1143.
Hourly Chart
On the daily candle chart, a descending pattern can be observed. In theory, the pattern should guide a long term decline. The decline would then test the support of the 61.80% Fibonacci retracement level at 1.1184.
From a fundamental perspective the declining pattern captures the fact that the European Central Bank is increasing the EUR money supply. Meanwhile, the US Federal Reserve kept its policy unchanged in June.
Read more in the June Central Banks Updates article.
Daily chart
Read More: Technical Analysis
Short sentiment drops
On Wednesday, on the Swiss Foreign Exchange 58% of all EUR/USD open position volume was in short positions.
On Tuesday, the sentiment was 65% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 62% of orders in that range were to buy.
The orders were 63% to buy on Tuesday.