The support of the dominant pattern and the monthly pivot point at 1.1300 was passed. The move has resulted in a drop downwards.
In general, for the future it is expected that the pair will continue its descent in the future.
The European Single Currency appreciated against the US Dollar, following the US FOMC Meeting Minutes release the previous Wednesday at 19:00 GMT.
The EUR/USD exchange currency rate gained 45 pips or 0.39% during a minute, right after the release. The European Single Currency continued trading at the 1.1480 area against the US Dollar.
The Federal Reserve releases US FOMC Meeting Minutes where Fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.
Week of inflation and retail sales data
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.However, take into account that on Tuesday the heads of Bank of England and the US Federal Reserve will speak publicly. UK's Governor Carney will speak at 13:00 GMT and the head of the Federal Reserve Jerome Powell is set to speak at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
EUR/USD hourly chart's review
The European Single Currency passed through the support level of the dominant pattern line at 1.3106. Moreover, the rate passed through the other two technical indicators to trade at the the1.2600 mark.In regards to the near-term future, most likely, the European Single Currency will continue depreciating against the US Dollar to the weekly S2 at 1.1229.
Meanwhile, the 55-hour and the 100-hour simple moving averages will try to catch up the rate during the day.
Hourly Chart
The large scale situation can be observed better on the daily candle chart.
The second of the previously laid out scenarios has become reality. The rate has pierced the supporting trend line at 1.1300.
Due to that reason, it is expected that step by step through each of the pivot points the rate might eventually reach for the low levels near the 1.1150 mark. At that level a strong cluster of technical support levels was located at.
Daily chart
Throughout last week traders had become from 70% short to 64% short by Friday. On Monday, the trend continued.
However, the closing of the short positions ended on Tuesday, as traders firmly remained 61% short on EUR/USD.
Meanwhile, by looking at the pending orders in a 100-pip range above and below the current exchange rate one can see where the rate might move in the near future.
63% of pending orders are to buy.
In general, a majority of traders are still shorting the EUR/USD but have their stop losses and take profits close by.