On Monday, the EUR/USD traded near the 1.1200 level.
Namely, the pair had pierced the 1.1200 level and bounced off resistance at 1.1217.
In general, the rate was expected to remain near the 1.1200 level until the technical support of the hourly simple moving averages pushes it upward.
The European Common Currency traded sideways against the US Dollar, following the US Durable Goods Orders data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 5 pips or 0.04% right after the release. The Euro continued trading at the 1.1196 level against the Greenback.
Census Bureau released the US Core Durable Goods Orders data, which came out slightly worse-than-expected of 0.0% compared with forecast 0.1%.
According to analysts, orders' decline was driven mostly by the US-China trade war. Non-military capital goods orders, except aircraft, declined 0.9%. Bookings for all items meant to last at least 3 years dropped 2.1%.
Three important events during the week
This week there are three notable events on the economic calendar that traders will watch.On Wednesday, the markets will watch the Bank of Canada Rate Statement at 14:00 GMT. This event has caused since October 2018 moves from 67 to 93 base points on the USD/CAD.
It is currently the top creator of sudden volatility in the markets.
On Thursday, at 12:30 GMT the US Preliminary GDP will be published. This event, which is considered and shown on the calendars as a top mover, has not caused notable moves.
Since November 2017 this event has caused on the EUR/USD moves from 6.8 to 11.9 pips during the five minutes after the release. Note that a move below ten pips on the EUR/USD during five minutes happen often without any data being published.
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair raised to the upper boundary of the short-term descending channel at 1.1215. During today's morning, the pair reversed south.From a theoretical point of view, it is expected, that the exchange rate could maintain its decline in the nearest future. However, it is likely, that the rate could be supported by the 55-, 100– and 200-hour SMAs, as well the weekly PP at 1.1175.
It is the unlikely case, that some upside potential could prevail in the market, and the European Common Currency could exceed the 1.1217 level due to the resistance of the monthly PP.
Hourly Chart
On the daily candle chart, it could be seen that the rates bounce off was consistent with the larger pattern. Namely, the rate bounced off the support of a dominant pattern near 1.1100.
In theory, the pair should eventually reach the 55-day simple moving average and the resistance trend line near 1.1240.
Daily chart
Traders continued to short the EUR/USD. Despite the surge, most open position volume is in short positions.
On Monday, by the middle of the London trading session 68% of all open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had not changed since Friday.
In addition, trader set up pending orders in the 100-pip range were bearish. Namely, 54% of all orders were to sell.