On Tuesday, the rate had slightly recovered. In the meantime, the pair was approached by the 100-hour simple moving average, which could provide additional support and push the rate up.
Economic Calendar Analysis
This week, the EUR is expected to react to the publication of the European Central Bank's Monetary Policy Statement on Thursday 11:45 GMT. However, the reaction to the publication itself is rather low. Instead, most volatility can be expected at 12:30 GMT during the ECB Press Conference.
On Friday, at 12:30 GMT the rate could move due to the publication of the US Producers Price Index.
EUR/USD hourly chart's review In the case of a surge, the EUR/USD currency exchange rate would most likely test the resistance of the 1.1900 level. The 1.1900 has kept the rate down since the start of July.
On the other hand, a decline of the pair would have to pass the support of the 100-hour simple moving average near 1.1860 and the weekly simple pivot point at 1.1858 before reaching lower. Below the mentioned support levels, the pair could find support in an ascending support trend line near 1.1840 and the 200-hour simple moving average near 1.1825.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, EUR/USD has reached the resistance of the 1.1900 zone. The 1.1900 level's zone has kept the rate down since the start of July. The rate has made numerous attempts to pass this level throughout the previous two months.Above the 1.1900 zone, the 100-day simple moving average could provide resistance at the 1.1950 mark. The 200-day SMA was doing the same at 1.2000.
A bounce off from the 1.1900 mark would most likely look for technical support in the 55-day simple moving average near the 1.1815 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, on the Swiss Foreign Exchange trader open positions were short, as 55% of open position volume was in short positions.
On Monday, the sentiment was 53% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 60% to sell the currency exchange rate.