The EUR/USD has reached the previously set target at 1.1410. At that level the rate met with the resistance of a monthly pivot point.
In general, the rate was expected to trade sideways until it finds technical support in the lower trend line of an ascending channel pattern and the 55-hour simple moving average.
The European Common Currency appreciated against the US Dollar, following the French Flash Services and Manufacturing PMIs data release on Friday at 07:15 GMT. The EUR/USD exchange currency rate gained 19 pips or 0.17% right after the release. The Euro continued trading at the 1.1315 level against the Greenback.
Markit released the French Flash Services PMI data, which came out better-than expected of 53.1 compared with forecasted 51.6. The French Flash Manufacturing PMI data also came out better-than expected of 52.0 compared with forecast of 51.0.
Surprisingly, the Euro appreciated only 13 pips or 0.11% against the US Dollar, following the German Flash Manufacturing and Services PMIs data release on Friday at 07:30 GMT. The given data also beat expectations.
Minor events during the week
This week there will be some minor events that might cause notable moves.
The data that is noted by the financial markets as important starts on Wednesday. On that day, the US Durable Goods Orders and Core Durable Goods Orders will be published at 12:30 GMT.
This event since February has caused moves from 5.1 to 18.0 pips. Moreover, the 18 pip was an anomaly, as the rest of the events have caused from 5.1 to 9.0 pips.
On Thursday, the US Final GDP will be published at 12:30 GMT. This is the least important GDP of the three quarterly publications of the US GDP. Since March 2018 this event has caused moves from 7.6 pips to 26.4 pips.
The full review of all of the notable events is available in video on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
The EUR/USD has reached the previously set target. The monthly pivot point at 1.1410 has been reached on Tuesday morning.In regards to the near term future, the pair is expected to trade sideways below the resistance until the 55-hour simple moving average approaches the pair from below. In addition, the pair will find support in the lower trend line of the ascending pattern that represents the Federal Reserve's causes surge.
On the other hand, information that would reveal upcoming increase of the US Dollar's supply could cause a break of the monthly pivot point. In this case the rate would aim at the weekly R1 at 1.1438.
Hourly Chart
On the daily candle chart, the rate has reached the upper trend line of the channel up pattern, which captures the pair's movements since the start of May.
The trend line is bound to strengthen the technical resistance of the monthly R1 just above the 1.1400 level.
Meanwhile, note that the rate passed the resistance of the 200-day simple moving average on Friday. The SMA should provide support to the rate near the 1.1350 level.
Daily chart
Since Monday, most open EUR/USD position volume was in short positions. Namely, 73% of open volume on the Swiss Foreign Exchange was in short positions.
It can be explained by long traders taking profits and opening short positions in the expectations of a retracement down.
Meanwhile, trader set up pending orders in 100-pip range around the pair were set to sell, as 57% of all orders were set to sell and 43% were to buy.
The orders most likely were set to open short position in the case of a retracement beginning.