On Monday, the EUR/USD currency exchange rate recovered, as it had previously found support in the 1.1050 level.
By the middle of Monday's GMT trading hours, the pair had bounced off the resistance of two hourly simple moving averages and was heading lower.
Economic Calendar Analysis
On Tuesday, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
EUR/USD hourly chart's review
At the end of last week, the EUR/USD currency pair tried to surpass the Fibo 38.20% at 1.2000. During Monday morning, the pair was testing the upper boundary of a short-term descending channel.From a theoretical point of view, it is likely that a reversal south could occur in the nearest future, and the exchange rate could re-test the lower channel line near 1.1050.
However, if the given channel does not holds, it is likely that the currency pair could target the support level formed by the weekly S1 and the monthly PP and located in the 1.0950 area.
Hourly Chart
On the daily candle chart, the rate no longer is overbought, as it has retraced back down to the daily simple moving averages. Since Thursday, the SMAs began to provide support to the rate near the 1.1050 level.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Friday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's GMT trading hours, the sentiment was 61% short.