The EUR/USD broke its ascending patterns on Monday morning. Although, the rate still had plenty of technical support levels below it.
In general, despite breaking an ascending pattern, the rate could still surge.US Employment Data
The European Common Currency depreciated against the US Dollar, following the US Employment data set release on Friday at 12:30 GMT. The EUR/USD exchange currency rate lost 24 pips or 0.22% right after the release. The Euro continued trading at the 1.0965 level against the Greenback.
The Bureau of Labor Statistics released the US Unemployment Rate data, which came out better-than-expected of 3.5% compared with the forecast of 3.7%.
According to the official release: "In September, the unemployment rate declined by 0.2 percentage point to 3.5 percent. The last time the rate was this low was in December 1969, when it also was 3.5 percent. Over the month, the number of unemployed persons decreased by 275,000 to 5.8 million."
US Employment Data at 12:30
This week there are a couple of events scheduled, which could impact the EUR/USD.
On Tuesday the US PPI release at 12:30 GMT could cause a move. Although, it usually causes a move below ten pips, which is considered insignificant.
On Wednesday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 6.7 to 20.4 base points.
On Thursday, watch out for the ECB Monetary Policy Meeting Accounts at 11:30 GMT. In general, they have not caused sudden moves. Despite that the information revealed could break trends and create larger swings.
On the same day the US CPI will be released at 12:30 GMT. The event has caused moves from 13.3 to 26.9 pips since May. In addition, the reactions have been increasing each month.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
EUR/USD hourly chart's review
On Monday morning, the EUR/USD broke the lower trend line of the ascending wedge pattern, which guided it last week. However, the event does not necessarily signal a decline.The rate was more likely to trade sideways, as it had close by the support of a monthly and weekly pivot points and the 100 and 200-hour simple moving averages from 1.0945 to 1.0965.
On the other hand, if the resistance of the 55-hour SMA fails to provide resistance, the rate could surge as high as 1.1028, where the first resistance of the weekly simple pivot points was located at.
Hourly Chart
On the daily candle chart, the rate has surged in the borders of a channel down pattern. The upper trend line of the pattern is located close to 1.1000.
Meanwhile, the 55-day simple moving average was sharply approaching the currency rate and could reach it during the week.
Daily chart
Since Thursday, 64% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Monday, as 66% of open volume was in short positions.
Meanwhile, pending trade orders were bearish, as 57% of orders in the 100-pip range were set to sell and 43% were to buy.
Previously, the orders were 63% to sell