On Thursday morning, the EUR/USD currency pair declined to the weekly S2 at 1.0776.
If the given support level holds, it is likely that the pair could reverse north. Otherwise, bears could prevail in the market.
Economic Calendar Analysis
This week, there are no events left that could impact the EUR/USD pair.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD currency pair tested the support level—the monthly S1 at 1.0840. During today's morning, the pair was re-testing the given support.Note that the exchange rate remains under pressure of the 55-hour SMA near the 55-hour SMA near 1.0980. Thus, some downside potential could prevail in the market.
However, note that the currency pair could gain support from the monthly S2 at 1.0776. If the given level holds, a reversal south could occur, and the pair could try to surpass the monthly S1 at 1.0938.
Hourly Chart
On the daily candle chart, it can be observed that the pair was piercing the 2020 low at 1.0785. Note that the nearest potential support level – the monthly S2, is located at 1.0650.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.