In the aftermath of touching the 1.1250 mark, the rate declined. By the middle of Thursday's GMT trading hours, the rate had retreated to the 1.1200 level.
Economic Calendar Analysis
On Thursday, June 4, the European Central Bank is set to issue the Monetary Policy Statement and reveal its Main Refinancing Rate at 11:45 GMT.
The week will end with the US Employment data set release on Friday 12:30 GMT.
EUR/USD hourly chart's review
The rate's retreat has reached the 1.1200 level. At this level the pair has met with the support of a 38.20% Fibonacci retracement level and the 55-hour simple moving average.In the case of these levels failing to provide support, the rate could next aim at the 100-hour simple moving average near the 1.1160 level.
On the other hand, if the rate rebounds from the Fibo and the 55-hour SMA, it would immediately test resistance of a pivot point at 1.1211 and afterwards once again aim at 1.1250.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 61.80% Fibo at 1.1184. In general, the rate has no additional resistance on the chart.
Daily chart
Read More: Technical Analysis
Strong short sentiment remains
On Monday, on the Swiss Foreign Exchange 72% of all EUR/USD open position volume was in short positions.
Afterwards it increased, as since the middle of Tuesday's GMT trading hours, 74% of open volume was bearish.
Traders remained short despite the recent surge.