Since yesterday, the EUR/USD currency pair has been testing the resistance level formed by the monthly R2 at 1.1338.
If the given resistance does not hold, it is likely, that the pair could reach the psychological level at 1.1360.
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
Today, the US CPI data release will be on focus. The release 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
Yesterday, the EUR/USD currency pair tried to surpass the resistance level formed by the monthly R2 at 1.1338. During today's morning, the pair was still testing the given resistance.Note, that the exchange rate is supported by the 55– and 100-hour moving averages, currently located at 1.1319 and 1.1304 respectively. Thus, the rate could surpass the given resistance and reach the 1.1360 level.
If the given resistance level holds, it is expected, that the pair could continue to trade sideways. Also, it is unlikely, that the rate could drop lower than the weekly PP at the 1.1281 mark.
Hourly Chart
On the daily candle chart, the pair is also testing the monthly R2 at the 1.1338 mark.
Note, that the exchange rate is also pressured by the 200-period SMA, currently located at 1.1368. Thus, it is unlikely, that some upside potential could prevail in the market.
Daily chart
On Wednesday, 71% of open all positions on the Swiss Foreign Exchange were short.
Meanwhile, trader set up pending orders in 100-pip range around the pair were almost neutral, as 51% of orders were to buy.