EUR/USD bounced off the resistance of the 1.1200 level. By the middle of Tuesday's trading session, the pair had reached below the 1.1170 level.
During the decline, the rate easily passed the support of the 55 and 100-hour SMAs and the weekly pivot point.Economic Calendar Analysis
The week's data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time. This event has caused moves from 9.7 to 36.5 pips on the EUR/USD.On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the EUR/USD has moved from 14.5 to 41.4 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
EUR/USD hourly chart's review
By the middle of the day's London trading hours, the EUR/USD had pierced the support levels that were located at 1.1175 and almost touched the 200-hour SMA.The rate had two future scenarios. If the 200-hour SMA provides support to the pair, it would test the resistance of the 55-hour SMA and the weekly simple pivot point at 1.1175.
On the other hand, if the 200-hour SMA fails to provide support, the rate in theory should reach for the monthly pivot point at 1.1153.
Hourly Chart
On Thursday, we wrote how the daily chart indicates that the rate is overbought due to daily simple moving averages being left below.
On Friday, the rate's decline partially got rid of the overbought pressure. Namely, the rate dropped below the 200-day SMA. Namely, the pair can now surge.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
Since Friday, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment decreased to 72%.
Meanwhile, most of set up pending orders were set to sell, as 76% of orders in the 100-pip range were to sell and 24% were to buy.
On Monday, 80% of orders were to sell.