During Monday morning, the EUR/USD currency pair was testing the resistance formed by the 55-hour SMA and the monthly R1 at 1.1140.
If the given resistance does not hold, it is likely that a surge towards the 1.1180 level could occur.Economic Calendar Analysis
This week, there are a few economic events that could affect the EUR/USD pair.
Today, the US Flash Manufacturing PMI survey results will be released at 14:45 GMT.
On Friday, December 21, the US Final GDP data will be published at 13:30 GMT.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair dropped to the support level formed by the 100-hour SMA at 1.1113. During today's morning, the pair was testing the resistance firmed by the monthly R1 and the 55-hour SMA at 1.1140.If the given resistance holds, it is likely that some downside potential could prevail in the market. In this case note that the exchange rate could gain support of the 200-hour SMA at 1.1100.
However, note that the currency pair could gain support from the 100-hour SMA and the weekly PP at 1.1125, surpass the given resistance and target the 1.1180 level. If the given resistance hold, the Euro could consolidate against the Greenback in the short run.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of the 200-day moving average. The rate could gain support of the 55- and 100-day SMAs and breach the given resistance in the near future.
In regards to the longer term future, the rate should pass the 1.1200 level and surge up to the 1.1300 mark by the end of January.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
Since the middle of Thursday's trading hours, on the Swiss Foreign Exchange 74% of open position volume was in short positions. The traders had suffered losses on the Brexit surge.
Meanwhile, pending trade orders were bearish, as 60% of orders in the 100-pip range were to sell and 40% were to buy.