During the early Monday's trading hours the EUR/USD was being pushed down by the technical resistance of the 55-hour simple moving average near the 1.1320.
At the same time the rate had no technical support as low as the 1.1240 level. Due to that reason a decline was expected.
The European Single Currency depreciated against the US Dollar, following the German Flash Manufacturing PMI release on Friday at 08:30 GMT. The EUR/USD exchange currency rate lost 83 pips or 0.73% , right after the release. The European Single Currency continued trading at the 1.1300 area against the US Dollar.
The Markit released German Flash Manufacturing PMI data that came out lower-than-expected of 44.7, compared to forecast 48. Note, that the German Flash Services PMI was released at the same time with the Manufacturing PMI.
Key comments from Phil Smith, Principal Economist at IHS Markit: "The downturn in Germany's manufacturing sector has become more entrenched, with March's flash data showing accelerated declines in output, new orders and exports. Uncertainty towards Brexit and US-China trade relations, a slowdown in the car industry and generally softer global demand all continue to weigh heavily on the performance of the manufacturing sector, which is now registering the steepest rate of contraction since 2012."
Last week of the month is quiet
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
EUR/USD hourly chart's review
On Tuesday morning the EUR/USD was being pushed down by the 55-hour SMA. The rate was set to face a couple of short term support levels.First would be the 1.1300 mark with its psychological support, afterwards there is a supporting trend line near 1.1280.
On the other hand, the rate might break the 55-hour SMA near 1.1320 and surge up to the technical resistance cluster near 1.1340.
Hourly Chart
On the daily chart it can be seen that the lower trend line of an ascending pattern has stopped the decline of the EUR/USD.
Although, this pattern is junior to two massive scale channel down patterns, which can be seen by zooming the chart out.
Due to that reason a breaking of the supporting trend line is expected.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 73% of volume was shorting the EUR/USD.
Meanwhile, trader set up pending orders in the 100-pip range were neutral. Namely, 58% of pending orders were set to sell.
Despite the rate recovering on Monday, traders have remained short on the pair. Moreover, there are additional pending sell orders set up.