By the middle of Monday's trading the EUR/USD had passed a significant technical resistance at 1.1320.
In general, the pair had no resistance as far as 1.1345.
The European Single Currency appreciated against the US Dollar, following the US Retail Sales data released on Thursday at 13:30 GMT. The EUR/USD exchange currency rate gained 19 pips or 0.17% during a minute, right after the release.
The European single currency continued trading at the 1.1295 area against the US Dollar.
The Census Bureau released US Retail Sales data that came out lower than expected of negative 1.2%, compare to forecasted 0.1%. Note, that the US Core Retail Sales was released at the same time with the US Retail Sales.
"The equity meltdown? Maybe there is something in that perhaps, as there was from the apparent inability of seasonal adjustment factors to cope with the now-pervasive bring forward of (on line) sales into November from Black Friday and Cyber Monday. Perhaps revisions are pending," says David de Garis, a director and senior economist at National Australia Bank.
FOMC Meeting Minutes in focus
This week will have various data releases in various countries that will influence many currency exchange rates. Although, the main event of the week will be the release of the Federal Open Markets Committee Meeting Minutes on Wednesday.The data releases will start on Tuesday. At 09:30 GMT the UK will publish their employment data. The Average Earnings index will have the biggest impact on the value of GBP.
On Wednesday, the already mentioned FOMC Meeting Minutes will be published at 19:00 GMT. They are expected to cause an impact on all USD pairs.
On Thursday, EUR traders will pay attention to the Markit released European Services and Manufacturing PMIs. The German release at 08:30 GMT is the most important.
Later on during the same day the US Durable Goods Orders and Core Durable Goods Orders will be published.
The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
EUR/USD hourly chart's review
As the rate has broken the resistance levels at 1.1320, it is aiming higher. Namely, it is set to reach for that level.On the other hand the rate might decline, as it has no technical support as low as the previously passed levels at 1.1320.
Hourly Chart
The daily chart indicates that this surge most likely is just a consolidation of the gains of the USD against the European currency.
Note that the previously broken lower trend line of an ascending pattern was serving as a resistance on Monday. It was stopping the rate from surging up to the 1.1345 mark.
Meanwhile, the support levels at 1.1300 will provide support to the EUR/USD during this week.
Daily chart
On Friday, 60% of volume was short on the EUR/USD on the Swiss Foreign Exchange. By the middle of Monday's trading 63% was short.
Meanwhile, of all the trader set up buy and sell orders in a 100 pip range around the rate buy orders dominated. Namely 58% of orders in that range were to buy.