On Wednesday, the EUR/USD remained near previous trading session levels, as it bounced between 1.1090 and 1.1080.
In the meantime, the rate had been approached by the 55-hour simple moving average, which during the morning hours was located at 1.1065. Fundamentals Crash US Dollar
Since Monday, December 2, the US Dollar has been depreciating.
Most likely, the Greenback is pressured by various fundamental events. Firstly, on Monday, the World Trade Organization rejected the EU claims for providing subsidies to Airbus. Thus, the US could increase tariffs on more European goods.
Also, on Monday, Cuba took another step to end dual monetary system, and two department stores in Havana began to give change only in pesos.
Moreover, the US President Donald Trump announced tariffs on the US steel and aluminum imports from Brazil and Argentina. Trump claimed that the given countries control devaluation of their currencies, and it was harmful for the US farmers.
According to analysts, the Greenback was also pressured, as the US factory activity has been declining for four months. Also, the US construction spending dropped in October.
On Tuesday December 3, the EU representatives said that the union was ready to reciprocate in case the US would impose tariffs on the French products worth $2.4B.
All these events could negatively affect the demand for the US Dollar, as trade flows could decrease significantly.
Economic Calendar Analysis
On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
The ADP Employment Change can be ignored. It has created reactions on the EUR/USD below ten pips. In general, a move below ten pips on a five minute time frame is seen as normal.
In the meantime, the ISM Non-Manufacturing PMI since June 2019 has caused moves from 9.7 to 36.5 pips.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 14.5 to 41.4 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
EUR/USD hourly chart's review
On Wednesday morning, the EUR/USD sharply declined to the support of the 55-hour SMA, which had passed the weekly pivot point that was located at 1.1063.If the pair drops below the 55-hour SMA and the weekly R2 at 1.1063, the rate would drop to the next support levels near 1.1040. At that level the 100-hour SMA and the weekly R1 were located on Wednesday.
On the other hand, the 55-hour SMA might push the rate higher to test the resistance of the weekly R3 pivot point at 1.1093.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55-day simple moving average at 1.1042 and has pierced the 100-day SMA at 1.1073.
If the 100-day SMA fails to keep the rate down, then the next technical resistance to the pair on the daily candle chart would be located at the 1.1165 level. At that level the 200-day simple moving average was located at.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
The sentiment had changed by one percent since Tuesday.
Meanwhile, pending trade orders were bearish, as 71% of orders in the 100-pip range were to sell and 29% were to buy. Previously, the orders were 70% to buy.
Traders are waiting for a decline of the pair.