The EUR/USD has reached the 1.1300 level, as it was expected previously.
On Wednesday, the currency exchange rate was testing the resistance of the 1.1300 level, which was strengthened by the 200-hour simple moving average.
If the resistance that keeps the rate down at this level will be broken, the currency exchange rate will have no technical resistance as far as the 1.1365 level.
The European Single Currency depreciated against the US Dollar, following the US Retail Sales data released on Monday at 13:30 GMT. The EUR/USD exchange currency rate shortly dropped 9 pips or 0.08% during the minute right after the release. The European single currency continued trading at the 1.1242 area against the US Dollar
The Census Bureau released US Retail Sales data that came out better than expected of 0.2%, compare to forecasted 0.0%. Note, that the US Core Retail Sales was released at the same time with the US Retail Sales.
"Sales managed only a tepid reversal in January from December's deep freeze," said Douglas Porter, chief economist at BMO Capital Markets in Toronto. "While we expect some further comeback in the next couple months, the big story is that the economy's big engine is cooling."
US PPI and Durable Goods Orders at 12:30 GMT will impact EUR/USD
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.For more information watch the weekly calendar analysis stream on our YouTube channel.
EUR/USD hourly chart's review
On Tuesday morning, the EUR/USD hourly chart revealed that the rate was making attempts to pass resistance levels just below the 1.1300 level.If the resistance levels there are passed, the rate will surge up to the monthly pivot point at the 1.1365 level.
On the other hand, after the sharp recent gains, the currency exchange rate could trade sideways or retrace slightly downwards in order to consolidate its gains.
Hourly Chart
On the daily chart the rate is trading in a long term descending channel pattern.
Recently the currency exchange rate bounced off the pattern's lower trend line and gained enough strength to surge through the pivot points at 1.1240 and 1.1265. Due to that reason on the daily chart the EUR/USD has no resistance as high as the 1.1354 level.
If the rate passes the psychological resistance that the 1.1300 level is putting up, the rate might aim at the 1.1350 level.
Daily chart
Although the currency exchange rate continues to surge, the 66% of the total open position volume on the Swiss Foreign Exchange is short.
In addition, trader set up pending orders in the 100-pip range were also short. Namely, 61% of pending orders were set to sell.
In general, a majority of traders are either already short on EUR/USD or have set up pending sell orders that would open short positions as a decline begins.