On Tuesday, the EUR/USD currency exchange rate signalled that it could surge up to the 1.0980 level.
Meanwhile, the rate had continued to trade in a rising wedge pattern, which can be observed on the hourly candle chart.
Economic Calendar Analysis
Due to the fundamental changes in the markets, Dukascopy Analytics suggests to note the scheduled macroeconomic events, but avoid using historical data for guidance.
Namely, the whole world changes the money supply by announcing monetary stimulus and government expense increases. In other words, the central banks are creating more money and giving it to governments to stop the effects of the coronavirus. In effect, each announcement causes a fall of the currency that it affects.
This week, data is bound to reveal, how the coronavirus has continued to impact the US economy.
On Wednesday, the US Retail Sales data sets are bound to be published at 12:30 GMT. Most likely they will surprise the markets with the reveal of a drop in US consumption.
On Thursday, all attention is expected to be set on the weekly US Unemployment Claims. During the last weeks this announcement has been revealing shocking data, as during the two week period almost ten million US workers claimed unemployment benefits. The unemployment claims were previously ignored as they had stopped causing market reactions.
EUR/USD hourly chart's review
During the previous trading session, the EUR/USD currency pair revealed a rising wedge pattern. During Tuesday morning, the pair was trading near its lower line at 1.0920.From a theoretical perspective, it is likely that some upside potential could prevail in the market, and the exchange rate could reach the 1.0980 level.
On the other hand, the rate could be pressured by the 1.0950 mark down to the support formed by the weekly PP, the Fibo 23.60% and the 200-hour SMA in the 1.0880 area.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of the 55-day simple moving average, which is located at the 1.0974 level.
If this level fails to hold, next up the 100 and 200-day SMAs could be tested at 1.1034 and 1.1073.
Daily chart
Read More: Technical Analysis
Traders remain short on EUR/USD
On Tuesday, 75% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders were mostly short since the previous week.