During Tuesday morning, the EUR/USD currency pair was trading at the 1.0940 level.
Given that the pair is still pressured by the 55-, 100- and 200-hour moving averages, it is likely that some downside potential could prevail within the following trading day.
US employment data set on focus
This week there are a couple of US data releases on the economic calendars that are shown as high impact.
Today, at 14:00 GMT the US ISM Manufacturing PMI might impact the EUR/USD rate. Since April the announcement has caused moves from 12.7 to 20.9 base points.
On Thursday, the US ADP Non-Farm Employment Change will be published at 12:15 GMT. Although, note that this is one of the releases that should not have a high impact mark and be discussed by financial media, as it has lost its power to impact the financial markets.
Due to that reason, since October 2018 our analysts ignored this data release. Recently, due to the possibility that it might have regained its strength, data was checked. Five minutes after the data release there were moves from 5.3 to 9.7 pips on EUR/USD chart. A ten pip range is normal volatility for the EUR/USD.
On Friday, US employment data will be published. The event will have three numbers being revealed – the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
Due to each of the numbers impacting the rate differently by pushing the value of the USD up or down and with a different strength, the event has a wide range. Namely, since April the EUR/USD has moved from 13.3 to 48 pips due to the US labour data.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair declined to the 1.0940 level. During today's morning, the pair was trading at the given mark.Note that the exchange rate remains below the 55-, 100– and 200-hour moving averages, currently located in the 1.0990/1.0690 range. Thus, it is likely that the rate could maintain its decline. In this case the rate would have to surpass the support level—the weekly S1 at 1.0917.
If the given support level holds, it is expected that the European Common Currency could consolidate against the Greenback in the short-term. Otherwise, the pair could target the support level formed by the Fibonacci 23.60% retracement and the monthly S1 at 1.0888.
Hourly Chart
On the daily candle chart, there is no additional support to the currency exchange rate. The EUR/USD could fall down to the combination of the weekly and monthly S1s located circa the 1.0900 mark.
Daily chart
Read More: Technical Analysis
Traders go short
On Tuesday, 58% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were still bullish, as 63% of orders in 100 pips range around the current rate were to buy and 37% were to sell.