The decline of the EUR/USD extended, as it was expected. On Wednesday morning, the EUR/USD touched the 1.1200 level.
The rate's decline was stopped by the psychological support of the 1.1200 level and the 38.20% Fibonacci retracement level, which was located at that level.
In regards to the near term future, the rate was set to test the resistance of a monthly pivot point at 1.1220.
The European Common Currency traded sideways against the US Dollar, following the US PPI data release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 4 pips or 0.03% right after the release. The Euro continued trading at the 1.1245 level against the Greenback.
Bureau of Labor Statistics released the US PPI data, which came out in line with the expectations of 0.1%.
According to the official release: "Final demand prices moved up 0.1 percent in May and 0.2 percent in April. On an unadjusted basis, the final demand index rose 1.7 percent for the 12 months ended in June, the lowest rate of increase since advancing 1.7 percent in January 2017.The index for final demand less foods, energy, and trade services was unchanged in June following advances of 0.4 percent in both April and May. For the 12 months ended in June, prices for final demand less foods, energy, and trade services climbed 2.1 percent."
No more events for the EUR/USD
The EUR/USD this week was affected only by one macroeconomic data release.
Namely, the US Retail Sales and Core Retail Sales that were published on Tuesday at 12:30 GMT
In general, wait for the next Economic Calendar Overview on Monday to see next upcoming events. On the other hand, take a look at other this week's events described in this week's video.
EUR/USD hourly chart's review
On Wednesday morning, the EUR/USD had bounced off the 1.1200 level and was testing the resistance of the monthly pivot point at 1.1220 level.If the rate passes this resistance level, it could surge up to the combined resistance of the 55 and 200-hour simple moving averages at 1.1240 level.
On the other hand, the rate might fail to pass the resistance and make another attempt to pass the support of the 1.1200 level.
Hourly Chart
On the daily candle chart, the recent decline is consistent with the on Monday added medium term descending channel pattern.
In accordance with the pattern the currency exchange rate should fall below 1.1200 and reach down to the lower trend line of a larger pattern above 1.1180.
Daily chart
Since Monday, 71% to 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions. Only slight fluctuations of the sentiment had taken place.
These traders were profiting from the decline.
Meanwhile, trader set up pending orders in 100-pip range around the pair were bearish, as 56% of all orders were set to sell and 44% were to buy.
The bearish order proportion increased on Wednesday, as previously the orders were 53% bearish.