On Monday, the EUR/USD was expected to reach the 1.1300 level, as it had no technical or psychological resistance as high as this level.
Although, note that the move is expected to occur gradually, as the pair has only the technical support of the 55-hour simple moving average.
Latest Fundamental Event Report
The European Common Currency traded sideways against the US Dollar, following the US PPI data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 4 pips or 0.03% right after the release. The Euro continued trading at the 1.1245 level against the Greenback.
Bureau of Labor Statistics released the US PPI data, which came out in line with the expectations of 0.1%.
According to the official release: "Final demand prices moved up 0.1 percent in May and 0.2 percent in April. On an unadjusted basis, the final demand index rose 1.7 percent for the 12 months ended in June, the lowest rate of increase since advancing 1.7 percent in January 2017.The index for final demand less foods, energy, and trade services was unchanged in June following advances of 0.4 percent in both April and May. For the 12 months ended in June, prices for final demand less foods, energy, and trade services climbed 2.1 percent."
One event for the EUR/USD
The EUR/USD this week will be affected only by one macroeconomic data release.
Namely, the US Retail Sales and Core Retail Sales that will be published on Tuesday at 12:30 GMT can cause a notable reaction.
The event has caused moves from 9.0 to 24.3 pips since March.
EUR/USD hourly chart's review
On Monday morning, the EUR/USD traded above the support of the 55-hour simple moving average. Meanwhile, the rate had no technical resistance as high as the weekly R1 at 1.1307.In general, it was expected that the rate will reach for the technical resistance level, as soon as the support of the 100 and 200-hour simple moving averages approaches from below.
On the other hand, note that the 1.1300 level has been providing resistance to the currency exchange rate in the past. It could stop a surge.
Hourly Chart
On the daily candle chart, a medium term descending channel pattern was added. This pattern could guide the rate down to the 1.1200 level.
Daily chart
On Monday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were almost neutral, as 53% of all orders were set to sell and 47% were to buy.