Economic Calendar Analysis
On Thursday, watch out for the Bank of England's expected rate hike at 5.25%. It is possible that not only the GBP pairs, but other financial instruments could adjust to the continuation of rate increases.
On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
EUR/USD hourly chart
An extension of the ongoing decline is highly likely going to look for support in the 1.0935/1.0950 range, before approaching the weekly S1 simple pivot point and the 1.0900 mark. Below, 1.0900, the most close by support is the weekly S1 at 1.0829.A recovery of the European currency against the US Dollar is set to face resistance in the 1.1000 mark and the 50 and 100-hour simple moving averages. Higher above, note the weekly simple pivot point at 1.1035.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has been declining since the attempt to pass above 1.1250. Last week, the currency pair reached the combined support of the 1.0950 level, the 50 and 100-day simple moving averages and the lower trend line of a channel up pattern.On Tuesday, it appeared that the support had partially failed, as the trend line was pierced. However, the moving averages were still acting as support.
Daily chart
Read More: Technical Analysis
Traders are shorting
On Monday, the Swiss Foreign Exchange traders were 56% in short positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 54% to sell the Euro against the US Dollar.
On Tuesday, positions were 53% short and orders were balanced. 50% to sell and 50% to buy.