After touching the 1.1185 mark on Monday, the EUR/USD began a decline. By the middle of Tuesday's London trading hours, the rate had reached the support of the 1.1100 level.
In regards to the near term future, the pair was expected to find additional support in the 55-hour simple moving average, which could push the pair up to the 1.1200 level.
US ISM Manufacturing PMI
The Euro traded sideways against the US Dollar, following the US ISM Manufacturing PMI survey results release on Monday at 15:00 GMT. The EUR/USD exchange currency rate gained 8 pips or 0.07% after the release. The Euro continued trading at the 1.1130 level against the Greenback after the release.
The Institute for Supply Management (ISM) released the US ISM Manufacturing PMI survey results, which came out worse-than-expected of 50.1 compared with the forecast of 50.5.
Timothy R. Fiore, the Chair of the Institute for the ISM Manufacturing Business Survey Committee commented: "Global supply chains are impacting most, if not all, of the manufacturing industry sectors. Among the six big industry sectors, Food, Beverage & Tobacco Products remains the strongest, followed by Computer & Electronic Products. Petroleum & Coal Products is the weakest. Overall, sentiment this month is marginally positive regarding near-term growth."
Economic Calendar Analysis
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair tested the resistance level—the monthly R1 at 1.1157. During today's morning, the pair was testing the weekly R1 at 1.1120.Hourly Chart
On Monday, the traders of the Swiss Foreign Exchange were short on EUR/USD, as 65% of all open position volume was in short positions.
By the middle of Tuesday's trading, the sentiment was 68% short.
Meanwhile, set up pending orders were set to sell, as 63% of orders in the 100-pip range were to sell and 37% were to buy.
Previously, 75% of orders were to sell and 25% were to buy.