Economic Calendar Analysis
This week, on Wednesday, the markets will move at 12:30 GMT due to the release of the US Consumer Price Index data.
On Thursday, the top event for the Euro will take place. The European Central Bank is expected to reduce the Main Refinancing rate from 4.25% down to as low as 3.65%.
Also on Thursday, the US Producer Price Index will be published at 12:30 GMT. There could be a market reaction, if the data deviates from the market consensus forecast.
EUR/USD hourly chart analysis
An extension of the decline might look for support in the weekly S1 simple pivot point at 1.1021. A passing below this level is expected to look for support in the 1.1000 mark and the major channel down pattern.On the other hand, a recovery of the Euro against the US Dollar would have to reach above 1.1060, before approaching the combination of the 50, 100 and 200-hour simple moving average near 1.1080. Higher above, take into account the weekly simple pivot point at 1.1088 and the 1.1100 mark.
Hourly Chart
EUR/USD daily chart's review
The week before we reported: "The decline of the Euro against the US Dollar has found support near the 1.1050 level. A recovery and another attempt to break the 1.1130/1.1200 mark appears to be taking place."The attempt to break the range has failed near the 1.1150 level. The rate has returned to the support zone at 1.1025/1.1050.
Daily chart
Read More: Technical Analysis
Traders sit on profits
This week, on Monday, traders were bearish, as 67% of volume was in short positions.
Meanwhile, pending orders in the 100-base point range around the pair were 73% to sell.
On Thursday, traders were 69% short and orders were 54% to sell. It appears that some short traders have taken profits.