The EUR/USD continued to surge on Tuesday, as the rate managed to reach above the 1.1280 level.
The rate had no technical resistance as high as the 200-hour simple moving average, which was located at 1.1300. The resistance was expected to be reached during today's trading.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate and Official Statement release on Thursday at 12:45 GMT. The EUR/USD exchange currency rate lost 27 pips or 0.24% during a minute, right after the release. The European Single Currency continues trading at the 1.1255 area against the US Dollar.
The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.
"A new series of quarterly targeted longer-term refinancing operations (TLTRO-III) will be launched, starting in September 2019 and ending in March 2021, each with a maturity of two years," The Central Bank said in a statement.
US CPI at 12:30 GMT will impact EUR/USD
This week is unusual. The majority of the notable macroeconomic events take place at the start of the week.On Tuesday, at 12:30 GMT the US Consumer Price Index and Core Consumer Price Index will be published.
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
EUR/USD hourly chart's review
On Monday, the EUR/USD passed the resistance of the 100-hour simple moving average, which signalled that a surge higher might occur. On Tuesday that surge was taking place.The rate was expected to reach the 200-hour SMA at 1.1300. If this level gets passed, the rate would aim higher. Namely, the pivot point at 1.1365 would be targeted.
On the other hand, the 200-hour simple moving average would stop the retracement back upwards and push the rate down back into the support cluster near the 1.1240 level.
Hourly Chart
On the daily chart the rate is trading in a long term descending channel pattern.
Recently the currency exchange rate bounced off the pattern's lower trend line and gained enough strength to surge through the pivot points at 1.1240 and 1.1265. Due to that reason on the daily chart the EUR/USD has no resistance as high as the 1.1354 level.
If the rate passes the psychological resistance that the 1.1300 level is putting up, the rate might aim at the 1.1350 level.
Daily chart
Despite the recent surge of the EUR/USD the open position volume on the Swiss Foreign Exchange mostly remains short.
Namely, on Tuesday, 65% of the total open position volume was shorting the EUR/USD.
In the meantime, trader set up pending orders in the 100-pip range were also short. Namely, 59% of pending orders were set to sell.