The near term future scenarios depended on whether or not the pivot point managed to hold.
Economic Calendar Analysis
On Monday, the US ISM Manufacturing PMI at 15:00 GMT could cause a move. The EUR/USD has moved from 9.1 to 40.00 base points on the publication since September.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 10.4 to 16.9 pips.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 6.2 to 16.4 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The EUR/USD has moved 15.7 to 28.9 pips since September.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
During Monday morning hours, the EUR/USD currency pair dropped to the support level—the weekly S1 at 1.2070.If the predetermined support level holds, it is likely that the exchange rate could reverse north in the nearest future. In this case the rate could try to exceed the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2120/1.2136 range.
Otherwise, the European Common Currency could continue to trade downwards against the US Dollar within the following trading session. The currency pair could decline to the 1.2020/1.2040 range.
Hourly Chart
On the daily candle chart, the pair has once again pierced the support of the 55-day simple moving average, which was pushing the rate up since January 18. However, the rate has been finding support in the late December and early January low level just above the 1.2050 level.
In the near term future, the 55-day SMA should be watched, as it could start to provide resistance or resume the providing of support.
Daily chart
Read More: Technical Analysis
Traders become neutral
On Friday, on the Swiss Foreign Exchange trader open positions were bearish, as 54% of open position volume was in short positions.
On Monday, the sentiment was 52% short, as traders had become almost neutral.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 66% to buy the pair.