On Monday, the combined resistance of the 50 and 100-hour SMAs pushed the pair through the 1.0752/1.0759 range down to the 1.0740 level.
Economic Calendar Analysis
On Tuesday, the US Dollar is set to adjust to the monthly US Consumer Price Index release at 13:30 GMT. Inflation is expected to have been unchanged month on month and an annual decline from 3.2% down to 3.1% is expected. Meanwhile, the market consensus is that core inflation might have increased due to winter increasing demand for energy consumption.
On Wednesday, the top event of them all will take place. The US Federal Reserve will announce its Federal Funds Rate. The central bank is expected to keep the rate at 5.50%. Moreover, note the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. The events are scheduled for 19:00 and 19:30 GMT.
After the US reveal their policy, the rest of the world decides how to react on Thursday. Namely, the Swiss National Bank at 08:30 GMT, the Bank of England at 12:00 GMT and the European Central Bank at 13:15 GMT are all set to make rate announcements. The CHF, GBP and EUR are set to act to the rate announcements.
However, in most cases these banks do not surprise the financial markets. Moreover, they are all expected to follow the example of the Fed and keep their rates unchanged.
Meanwhile, note that the ECB President and Vice President are set to host a press conference at 13:45 GMT. Sometimes Christine Lagarde makes comments that impact the Euro and European stock indices.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
EUR/USD hourly chart analysis
In the case of a move below 1.0740, the rate could look for support in the 1.0700 mark and the weekly S1 simple pivot point at 1.0690.On the other hand, a potential recovery of the Euro against the US Dollar is set to face the 1.0752/1.0759 range as resistance. Above the zone, note the descending 50 and 100-hour simple moving averages near 1.0770. Even higher above, take into account the 1.0800 mark and the weekly simple pivot point at 1.0793.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has suddenly pierced below the support of the 200-day simple moving average. The indicator managed to hold throughout most of November.On Thursday we reported – "Next target for the decline could be the combination of the 50 and 100-day SMAs near 1.0700/1.0720." The target was reached on Friday. This week the both SMAs were at 1.0725 and acted as major support.
Daily chart
Read More: Technical Analysis
Traders are neutral
This week, the Swiss Foreign Exchange traders were 52% in long positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 59% to sell the Euro against the US Dollar.
On Friday, 51% of traders were short and pending orders were 54% to sell.