During Tuesday morning, the EUR/USD currency pair was testing at the psychological level at 1.1080.
Given that the pair is pressured by the 55- and 100-hour moving averages, it is likely, that the Euro could depreciated against the US Dollar.Economic calendar
This week there will be only one data release notable enough to cause a move on the EUR/USD charts. Namely, the German Manufacturing and Services PMIs from Markit will be published on Thursday at 07:30 GMT.
Since January the event has caused moves from 14.6 to 33.1 on the EUR/USD.
EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair traded sideways, trying to surpass the resistance of the 55-hour SMA at 1.1090. During Tuesday morning, the pair was still testing the given resistance.Note, that the exchange rate is also pressured by the 100-hour moving average, currently located at the 1.1112 mark. Thus, it is unlikely, that some upside potential could prevail in the market in the short term.
It is likely, that the Euro could depreciate against the US Dollar within the following trading session. Note, that the nearest support level is the weekly S1 at 1.1028. Otherwise, it is expected, that the pair could continue to consolidate.
Hourly Chart
On the daily candle chart, it could be observed that the exchange rate surpassed the psychological level at 1.1100. The next target for the decline is the psychological support of the 1.1050 level and the weekly S1 at 1.1041.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Tuesday, on the Swiss Foreign Exchange 68% of open EUR/USD position volume was in short positions.
The short sentiment declined since yesterday.
Meanwhile, trader set up pending orders in 100-pip range around the pair were strongly bearish, as 78% of all orders were set to sell and 22% were to buy.