The support of the 200-hour simple moving average did not hold for long on Tuesday. At mid-day it was passed. This resulted in a sharp decline, which reached the 1.1064 level.
On Wednesday, the rate was recovering from the decline. Although, the surge was seen only as a retracement that occurs after sharp moves. US ISM Non-Manufacturing PMI
The European Common Currency traded sideways against the US Dollar, following the US ISM Non-Manufacturing PMI survey results release on Tuesday at 15:00 GMT. The EUR/USD exchange currency rate gained 9 pips or 0.08% right after the release. The Greenback continued trading at the 1.1075 level against the Greenback.
The Institute for Supply Management (ISM) released the US ISM Non-Manufacturing PMI survey results, which came out better-than-expected of 54.7 compared with the forecast of 53.5.
Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee commented: "According to the NMI, 13 non-manufacturing industries reported growth. The non-manufacturing sector had an uptick in growth after reflecting a pullback in September. The respondents continue to be concerned about tariffs, labor resources and the geopolitical climate."
Economic Calendar Analysis
There are no more data releases scheduled for this week, which could impact the EUR/USD currency exchange rate.
Meanwhile, take into account that the week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair dropped to the support level formed by the monthly PP at 1.1071. During today's morning, the pair was testing the given support.If the given support level holds, it is likely that some upside potential could prevail in the market. However, it is unlikely that the exchange rate could exceed the 1.1118/1.1139 area due to the resistance formed by the 55- and 100-hour SMAs, as well the weekly PP
On the other hand, the Euro could trade sideways against the Greenback between the given support level and the weekly S1 at 1.1102. If the given support does not hold, the rate could target the weekly S2 at 1.1037
Hourly Chart
On the daily candle chart, the pair has passed the support of the 100-day simple moving average, which now should strengthen the pivot points that are located above the currency rate.
Meanwhile, note that the 55-day SMA was providing support at the 1.1045 level. It is set to provides support to the rate in the case of a decline.
Daily chart
Since Monday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the short sentiment increased to 72%.
Meanwhile, pending trade orders were to mostly to buy, as 78% of orders in the 100-pip range were to buy and 22% were to sell. Previously, the orders were 55% bullish.
It can be deducted from the numbers that traders have gained profits from the decline of the pair, but have not booked them. Meanwhile, the pending orders indicate that stop losses and take profits of the short positions are close by.
Moreover, some intend to open long positions in the case of a surge.