Economic Calendar Analysis
This week, the markets could react to the publication of the US Federal Reserve Meting Minutes on Wednesday at 18:00 GMT.
On Thursday, the top event of the week will take place. At 12:30 GMT, the US Consumer Price Index is bound to impact all currency pairs via an adjustment of the value of the US Dollar to the inflation numbers.
On Friday, the US Producer Price Index numbers will reveal how inflation is doing at the producer level. This rate might cause a move, if it deviates a lot from the market forecast. However, due to it being released a day after the consumer inflation, it is unlikely that the PPI numbers create a major market reaction.
EUR/USD hourly chart analysis
In the near term future, the Euro could recover against the US Dollar and face the resistance of the 50-hour simple moving average and the 1.1000 mark. If these levels fail, the rate should aim at the 1.1040/1.1065 zone and the weekly simple pivot point at 1.1045. In addition, the 100-hour SMA could slow down the pair.A potential resumption of the prior decline would look for support in the 1.0950 and 1.0900 levels, prior to approaching the weekly S1 simple pivot point at 1.0880.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the decline continues, as the pair has reached the support of the 100-day simple moving average and the 1.0950 mark.Previously, support was found in the combination of the 50-day simple moving averages and the 1.1025/1.1050 range. However, these levels failed to hold even before the publication of the US employment data sets.
Daily chart
Read More: Technical Analysis
Traders continues to take profits
Last week, on Monday, traders were bearish, as 74% of volume was in short positions.
On Wednesday, traders were 67% short.
By this week, only 62% were short, as traders have continued to take profits.
Meanwhile, pending orders in the 100-point range around the current rate were 56% to sell the Euro against the USD.