By the middle of Wednesday's trading session, the EUR/USD had traded sideways. The rate fluctuated between the support of the 55-hour simple moving average at 1.1092 and the resistance of a monthly pivot point and the 100-hour SMA near 1.1100.
In general, a break out was expected to occur. If the rate breaks out to the upside, a weekly pivot point at 1.1130 would be targeted. On the other hand, a decline could aim at the support level at 1.1030.Economic Calendar
This week there will be only one data release notable enough to cause a move on the EUR/USD charts. Namely, the German Manufacturing and Services PMIs from Markit will be published on Thursday at 07:30 GMT.
Since January the event has caused moves from 14.6 to 33.1 on the EUR/USD.
EUR/USD hourly chart's review
The EUR/USD is squeezed in between the 55-hour SMA from below and the 100-hour SMA with a pivot point above it.If the rate breaks out from the squeeze to the upside, it would aim at the resistance of the weekly pivot point at 1.1130.
On the other hand, a breakout down would aim at the support levels that are located at 1.1030.
Hourly Chart
On the daily candle chart, it could be observed that the exchange rate surpassed the psychological level at 1.1100.
The next target for the decline is the psychological support of the 1.1050 level and the weekly S1 at 1.1028.
Daily chart
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Traders remain short on EUR/USD
Since Tuesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were neutral, as 50% of orders in 100 pips range around the current rate were to buy and sell.
Previously, on Tuesday, trader set up pending orders in 100-pip range around the pair were strongly bearish, as 78% of all orders were set to sell and 22% were to buy.