The EUR/USD started the week by trading below a strong resistance cluster. The rate was facing hourly simple moving averages and a weekly pivot point near the 1.1110 level.
The future scenarios were based on what would happen at this level.
Economic Calendar Analysis
This week the EUR/USD is bound to be affected by US data and an expected rate cut.
On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. This event can be ignored, as it has been creating volatility below ten pips since October 2018.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the EUR/USD charts from 11.7 to 35.3 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 28.6 to 57.8 base points since January 2019.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 14.5 to 48.0 pips since June 2019.
At the same day, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 12.7 to 37.2 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair declined to the psychological level at 1.1080. During today's morning, the pair was trading at the 1.1090 mark.Note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located circa 1.1100. Thus, some downside potential could prevail in the market. A possible downside target is the psychological level at 1.1060.
On the other hand, the currency pair could break the 1.1110 resistance and test the weekly R1 at 1.1150.
Hourly Chart
On the daily candle chart, take into account that the rate is being supported at the 1.1040 level by the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
On Monday, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were bullish, as 61% of orders in the 100-pip range were set to buy and 39% were to sell.
The sentiment numbers had almost not changed since Friday.