During the first half of Tuesday's London trading, the EUR/USD currency exchange rate traded sideways between 1.1065 and 1.1080. The rate was consolidating in the aftermath of the surge, which occurred since late November 14.
In regards to the near term future, the pair is expected to continue to trade sideways until it is approached by the technical support of the 55-hour simple moving average.Economic Calendar Analysis
This week, the EUR/USD is expected to be impacted by fundamentals on two days.
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT. Since April, the rate has moved from 6.7 to 20.4 pips in the five minutes following the release.
On Friday, the German and Euro Zone Manufacturing and Services Purchasing Manager's Indices are set to be published. German data will be out at 08:30 GMT. Euro Zone data will be out at 09:00 GMT.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
EUR/USD hourly chart's review
The rate is consolidating its gains by trading sideways. The sideways trading is expected to continue until the support of the 55-hour simple moving average approaches and pushed it higher.In the case of a surge, the rate would test the weekly R1 at 1.1078 and weekly R2 at 1.1100. That could occur during the early trading hours of Wednesday, as on Tuesday the 55-hour SMA support was still located near 1.1060.
On the other hand, a reversal could occur. It would occur, if the 55-hour SMA fails to provide support to the rate.
Hourly Chart
On the daily candle chart, the pair has passed the resistance of the 55-day simple moving average near 1.1045.
Next up, the pair is bound to test the resistance of the 100-day SMA, which on Tuesday was located at the 1.1084 level.
Daily chart
Read More: Technical Analysis
Traders short the EUR/USD
On Tuesday, on the Swiss Foreign Exchange 67% of open EUR/USD position volume was in short positions.
Meanwhile, pending trade orders were mostly bearish, as 62% of orders in the 100-pip range were to sell and 38% were to buy.
Despite the Thursday's surge, traders have remained short on the pair. In addition, there are still present buy to open long position orders.