By the middle of the day's European trading hours, the currency exchange rate had declined and passed the support of three technical levels. Due to that reason, the minor decline was expected to continue.
Economic Calendar Analysis
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays. However, there are still noteworthy data sets being released in the days before people are off from work.
All of the data releases of the week are scheduled to occur on 13:30 GMT.
Namely, on Tuesday, the US Final GDP could cause volatility. The EUR/USD could move from 7.3 to 31.9 pips.
On Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released. The EUR/USD has moved from 2.9 to 18.3 pips on the announcements since July.
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
Note the added resistance line, which connects the rate's high levels since December 17. This line caused the rate's decline at midnight to Tuesday. By the middle of the day's trading, the rate had pierced the support of the 55 and 100-hour simple moving averages and the weekly simple pivot point at 1.2216.In the meantime, the rate no longer had close by technical support, as the most close by was the 200-hour SMA at 1.2180. In theory, the pair should reach for this level. If the SMA fails to provide support, the EUR/USD could reach the weekly S1 simple pivot point at 1.2159.
On the other hand, there is a scheduled EU Brexit briefing for EU politicians at 15:00 GMT. This event and other Brexit announcements are bound to impact the rate. In addition, note that Brexit news crash technical patterns and ignore support and resistance levels.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern. Most recently it has made a retracement back down to the support of the resistance zone that kept the rate down in the first half of December.
Daily chart
Read More: Technical Analysis
Traders are short
Since Monday, on the Swiss Foreign Exchange trader open positions were bearish, as 62% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to sell the pair.