The EUR/USD currency pair reversed south from the resistance level formed by the weekly R1 at 1.1234.
Latest Fundamental Event Report
The European Common Currency traded sideways against the US Dollar, following the US Non-Manufacturing PMI data release on Monday at 14:00 GMT. The EUR/USD exchange currency rate gained 6 pips or 0.05% right after the release. The Euro continued trading at the 1.1195 level against the US Dollar.
Institute for Supply Management released the US Non-Manufacturing PMI data, which came out worse-than-expected of 53.7 compared with the forecast of 55.5.
Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee commented: "The NMI registered 53.7 percent, which is 1.4 percentage points lower than the June reading of 55.1 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since August 2016, when it registered 51.8 percent. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy."
Economic calendar
No significant economic data releases are expected during this week.
EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair reached the resistance level formed by the weekly R2 at the 1.1234 mark. During today's morning, the pair was trading near the given resistance.If the given level holds, it is expected, that a reversal south could occur in the nearest future. However, note, that the exchange rate has to surpass the Fibo 38.20%. If the given support holds, the rate could trade sideways.
It is unlikely, that the pair could tumble lower than the 1.1099/1.1148 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP.
If the given resistance does not hold, the pair could maintain its growth in the nearest future. A possible upside target is the monthly R1 at 1.1278.
Hourly Chart
On the daily candle chart it can be observed that the EUR/USD bounced off also of the lower trend line of a large scale descending channel pattern.
Daily chart
On Tuesday, 72% of open EUR/USD position volume was in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were almost neutral, as 53% of all orders were set to sell and 47% were to buy.