The EUR/USD currency pair has been consolidating at the psychological level at 1.1100 since last Friday.
From a technical perspective, it is likely, that some downside potential could prevail in the market, as the pair is pressured by the 55- and 100-hour SMAs, currently located at 1.1105 and 1.1134.
Economic calendar
This week there will be only one data release notable enough to cause a move on the EUR/USD charts. Namely, the German Manufacturing and Services PMIs from Markit will be published on Thursday at 07:30 GMT.
Since January the event has caused moves from 14.6 to 33.1 on the EUR/USD.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair traded sideways around the psychological level at 1.1100. During today's morning, the pair was testing the resistance of the 55-hour SMA, currently located at 1.1107.If the given moving average holds, it is likely, that the Euro could depreciate against the US Dollar in the short term. A possible downside target is the psychological level at 1.1060.
Otherwise, it is expected, that the exchange rate could maintain its consolidation within the following trading hours. It is unlikely, that some upside potential could prevail in the market, as the rate is pressured by the 100-hour SMA and the weekly PP at 1.1130.
Hourly Chart
On the daily candle chart, it could be observed that the exchange rate is testing the psychological level at 1.1100. The next target for the decline is the psychological support of the 1.1050 level and the weekly S1 at 1.1041.
If the given psychological level holds, the rate could reverse north to test the Fibonacci 61.80% retracement at 1.1203.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
By the middle of Monday's trading session on the Swiss Foreign Exchange 70% of open EUR/USD position volume was in short positions.
The number has not change since Friday.
On Monday, trader set up pending orders in 100-pip range around the pair were bearish, as 60% of all orders were set to sell and 40% were to buy.