On Monday morning, the EUR/USD bounced off the support of the ascending channel pattern that was added to the hourly chart on Friday.
In general, the rate was expected to test the resistance of the monthly pivot point at 1.1045.
Economic Calendar Analysis
This week one data release might impact the EUR/USD currency exchange rate. Although it is a minor one.
On Wednesday, the US Retail Sales and Core Retail Sales data will be published at 12:30 GMT. Since May 2019, the rate has caused moves on the EUR/USD charts from 9.0 to 24.3 base points.
Meanwhile, take into account that next week there will be other events, which are expected to cause larger reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
EUR/USD hourly chart's review
On Monday morning, the EUR/USD was surging after bouncing off the support levels from 1.1015 to 1.1020. The rate was expected to test the resistance of the monthly pivot point at the 1.1045 level.If this levels gets broken, the EUR/USD could be only kept down by the upper trend line of the channel up pattern.
On the other hand, if the pivot point holds, it would force the rate into trading sideways until the 55-hour simple moving average pushes it up.
Hourly Chart
On the daily candle chart, the pair has reached the resistance of the 55-day simple moving average. The SMA is both providing resistance and signaling that the EUR/USD is no longer oversold on the larger scale.
Daily chart
Read More: Technical Analysis
Traders sell the EUR/USD
On Monday, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was at 67%.
Meanwhile, pending trade orders were bearish, as 63% of orders in the 100-pip range were set to sell and 37% were to buy.
Previously, 80% of orders were to sell the EUR against the USD.