In regards to the near term future, the decline was expected to continue, as the pair had no technical support as low as 1.1000.
Economic Calendar Analysis
Note that on Wednesday, at 13:15 GMT the ADP Non-Farm Employment Change is scheduled to be published. However, with an exception in December, the event has not caused an increase of volatility on USD pairs.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing Purchasing Managers Index is set to be released.
Last but not least, on Friday, at 13:30 GMT the US will release their employment data. The release will consist of three data sets from the US – Average Earnings Change, Unemployment Rate and Non-Farm Employment Change.
Data tables with the week's event historical reactions have been published. Click on the name of the publication to view it.
Read More: 03.02-07.02 Event Historical Reactions
EUR/USD hourly chart's review
It is likely that the exchange rate could face resistance formed by the 55– and 100-hour SMAs and trade downwards in the short run. In this case the rate could re-test the 1.1000 level.It is unlikely that bulls could prevail in the market in the nearest future, and the currency pair could exceed the weekly PP located at 1.1061.
Hourly Chart
On the daily candle chart, the pair has declined below the support of the 100-day SMA, which failed on Monday.
Meanwhile, take into account that the 1.1000 level provides psychological support that can be found near round levels. The 1.1000 kept the EUR/USD from declining two times in November and at the end of January.
Daily chart
Read More: Technical Analysis
Traders gain from decline
Since the middle of Monday's GMT hours, 60% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Wednesday's trading, the sentiment was 59% short. Namely, a majority of traders should have positions in the green.
Meanwhile, set up pending orders were neutral, as 53% of orders in the 100-pip range were to buy and 47% were to sell.