Economic Calendar Analysis
This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
EUR/USD hourly chart
A continuation of the ongoing decline could look for support in the weekly S1 simple pivot point at 1.1063, the 1.1050 level and the combination of the 1.1000 mark and the weekly S2 simple pivot point. Further below, note the 1.0930/1.0950 range.However, a potential recovery of the Euro against the US Dollar could face resistance in the 50, 100 and 200-hour simple moving averages in the range from 1.1130 up to 1.1180. In addition, the weekly simple pivot point might act as resistance at 1.1169.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has broken the channel down pattern that guided the rate down since April. Moreover, the support of the 50 and 100-day simple moving averages was enough to cause a surge above the 1.1130/1.1190 range.If the rate continues to surge, resistance is expected to be found in the 2022 high level range at 1.1470/1.1495.
Daily chart
Read More: Technical Analysis
Traders are shorting
On the Swiss Foreign Exchange, traders are 71% in short positions.
Meanwhile, trader set up pending orders in a 100 point range around the current rate are 53% to sell the Euro against the US Dollar.