On Wednesday, the EUR/USD remained near previous trading session levels, as it bounced between 1.1090 and 1.1080.
In the meantime, the rate had been approached by the 55-hour simple moving average, which during the morning hours was located at 1.1065. Fundamentals Crash US Dollar
Since Monday, December 2, the US Dollar has been depreciating.
Most likely, the Greenback is pressured by various fundamental events. Firstly, on Monday, the World Trade Organization rejected the EU claims for providing subsidies to Airbus. Thus, the US could increase tariffs on more European goods.
Also, on Monday, Cuba took another step to end dual monetary system, and two department stores in Havana began to give change only in pesos.
Moreover, the US President Donald Trump announced tariffs on the US steel and aluminum imports from Brazil and Argentina. Trump claimed that the given countries control devaluation of their currencies, and it was harmful for the US farmers.
According to analysts, the Greenback was also pressured, as the US factory activity has been declining for four months. Also, the US construction spending dropped in October.
On Tuesday December 3, the EU representatives said that the union was ready to reciprocate in case the US would impose tariffs on the French products worth $2.4B.
All these events could negatively affect the demand for the US Dollar, as trade flows could decrease significantly.
Economic Calendar Analysis
EUR/USD hourly chart's review
On Wednesday morning, the EUR/USD sharply declined to the support of the 55-hour SMA, which had passed the weekly pivot point that was located at 1.1063.Hourly Chart
On Wednesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
The sentiment had changed by one percent since Tuesday.
Meanwhile, pending trade orders were bearish, as 71% of orders in the 100-pip range were to sell and 29% were to buy. Previously, the orders were 70% to buy.
Traders are waiting for a decline of the pair.