The EUR/USD currency pair has passed below the 1.0870/1.0880 and 1.0840/1.0850 ranges. The first range was passed, as the rate faced the resistance of technical levels and the 1.0900 mark. Afterwards, 1.0840/1.0850 failed due to the release of disappointing European Purchasing Managers Index survey results.
Meanwhile, it was spotted that Dukascopy traders have taken profits. Traders were 75% short on Monday. Today, 54% of open position volume was in bearish positions.
Economic Calendar Analysis
On Thursday, the US Advance GDP might impact the markets via an adjustment of the value of the US Dollar. Better GDP means that the US does not need to cut rates, which would keep the Dollar higher. Bad GDP data indicates that the Fed can cut, which would reduce the value of the USD.
On Friday, at 12:30 GMT, the top event of the week will take place. The US Core PCE Price Index will move the markets. The Core Personal Consumption Expenditure Index is expected to impact the markets by revealing whether inflation has increased or continues to decline. In general, the markets expect a reading of a monthly price increase of 0.2%. If the number is higher, the Dollar should surge. A reading below +0.2% is set to cause a decline of the USD.
EUR/USD hourly chart analysis
In the near term future, the rate is set to face the weekly S2 simple pivot point at 1.0823. If this technical level does not act as support, the pair is set to reach the 1.0800 mark. It has been observed that the 1.0790/1.0800 range has been impacting the EUR/USD. Further below, there is a support and resistance zone at 1.0745/1.0760.On the other hand, a potential recovery of the Euro against the US Dollar is set to face the 1.0840/1.0850 range. Higher above, note the previously passed 1.0870/1.0880 zone that could turn into resistance. In addition, the 50, 100 and 200-hour simple moving averages are highly likely to impact the rate.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair's recovery has managed to break the resistance of the 50, 100 and 200-day simple moving averages.A move higher could encounter resistance at previous resistance levels that are near round exchange rate levels. If all of these levels fail, the 1.1130/1.1200 zone will come into play.
In the case of a decline of the pair, it would have to reach below the SMAs, before looking for support in the 1.0635/1.0700 range.
Daily chart
Read More: Technical Analysis
Traders take profits
On Wednesday, Dukascopy traders were bearish on the EUR/USD, as 54% of open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the current rate are 52% to sell the Euro against the US Dollar.
On Monday, traders were 75% short and orders were 61% to sell. It appears that traders have taken profits.