In the near term future, the rate was either going to pass the resistance of two SMAs near 1.1830 or break the pattern and decline.
Economic Calendar Analysis
There are couple events that could impact the EUR/USD pair.
On Thursday, at 11:45 GMT, the European Central Bank would publish its Main Refinancing Rate, which most likely would remain at 0.00%. However, despite the rate remaining unchanged, since March, the rate has moved from 16.9 to 82.6 pips on the announcement.
On the same day, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
The EUR/USD is being pressured by the resistance of the 55 and 100-hour SMAs at 1.1829 and 1.1835. In the meantime, the lower trend line of the channel up pattern was providing support near 1.1800.In the case of the rate passing the resistance of the SMAs, the rate would aim for the 200-hour SMA and the monthly simple pivot point at 1.1867.
On the other hand, if the lower trend line of the pattern fails to keep the rate up or cause a surge, the rate could decline below 1.1800. A decline could reach the support of the weekly S1 simple pivot point at 1.1767.
Hourly Chart
On the daily candle chart, if the rate continued to decline, it could look for support in the combination of the monthly S1 at 1.1767 and the lower trend line of a large scale channel up pattern.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, on the Swiss Foreign Exchange 59% of all EUR/USD open position volume was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 64% of orders were to buy.
Previously, the orders were 52% to buy.