The decline was caused by a fundamental event. The ECB announced the increase of monetary stimulus on Thursday. Namely, the supply of EUR is expected to rise.
Economic Calendar Analysis
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on the EUR/USD from 6.0 to 15.3 base points, as it has done since October 16, 2020.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The EUR/USD has moved from 10.8 to 36.2 base points since November 5, 2020 on the announcement.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
The EUR/USD was looking for support in the 1.1915 level and the 100-hour simple moving average. In case this level is failing, the weekly S1 at the 1.1838 level could be targeted.On the other hand, if the support holds, the rate would test first the 55-hour SMA, second 200-hour SMA and afterwards the weekly simple pivot point at 1.1976.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has reached the support of the 200-day simple moving average, which might have been one of the causes of the recent EUR/USD recovery. The SMA pushes the rate up to the 23.60% Fibonacci retracement level at the 1.2000 mark.Meanwhile, take into account the resistance of the 55 and 100-day simple moving averages at 1.2039 and 1.2118
Daily chart
Read More: Technical Analysis
Sentiment numbers unchanged
Since Thursday, on the Swiss Foreign Exchange trader open positions were bullish, as 58% of open position volume was in long positions.
On Wednesday 59% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 56% to sell the pair.
Previously, the orders were 57% to sell.