During the previous trading session the EUR/USD currency pair traded sideways along the 55-hour SMA.
On Tuesday morning, the exchange rate continued to trade sideways along the given support. Also, note, that the pair is supported by the 100-hour SMA, currently located at 1.1285. Thus, it is unlikely, that some downside potential could prevail in the market in the nearest future.
The European Common Currency appreciated against the US Dollar, following the US Employment data set release on Friday at 12:30 GMT. The EUR/USD exchange currency rate gained 36 pips or 0.32% right after the release. The Euro continued trading at the 1.1315 level against the Greenback.
Bureau of Labor Statistics released the US Average Hourly Earnings data, which came out worse-than-expected of 0.2% compared with forecast 0.3%.
According the official release: "Total nonfarm payroll employment edged up in May (+75,000), and the unemployment rate remained at 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in professional and business services and in health care."
US CPI data could impact EUR/USD
On Wednesday, the US CPI data will be published at 12:30 GMT. Last data release caused a thirteen-pip move.
The week will end with the US Retail Sales data release at 12:30 GMT. Note, that previous data release caused a nine-pip move.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair traded sideways along the support level—the 55-hour moving average at 1.1307.Note, that the pair is pressured by the monthly R2 located at the 1.1338 mark. Thus, if the given resistance and support hold, it is likely, that the exchange rate could continue to trade sideways.
If the given resistance does not hold, it is expected, that the rate could extend gains and reach the psychological level at 1.1360.
From the technical perspective, it is unlikely, that the pair could drop lower than the 1.1280 mark due to the support level formed by the weekly PP and the 100-hour SMA.
Hourly Chart
On the daily candle chart, the pair is seeing some resistance from the monthly R2 at the 1.1338 mark.
If the given resistance does not hold, some upside potential could prevail in the market. However, note, that the rate could face the resistance of 200-period SMA, currently located at 1.1369.
Daily chart
On Wednesday, 71% of open all positions on the Swiss Foreign Exchange were short.
In the meantime, trader set up pending orders in 100-pip range around the pair were neutral, as 50% of orders were to buy.
In general, traders are sitting on their short positions without close by stop losses or take profits.