By mid-day, the rate was expected to test the support of a monthly pivot point at 1.0776.
Economic Calendar Analysis
On Wednesday, a minor move could be caused by the ADP Non-Farm Employment Change.
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
EUR/USD hourly chart's review
Given that the exchange rate is pressured by the 55-hour SMA near 1.0880, it is likely that some downside potential could prevail. In this case the rate could decline to the weekly S2 at 1.0728.However, the currency pair could gain support from the monthly S1 at 1.0776 and reverse north in the nearest future. In this case it is unlikely that the pair could exceed the Fibo 23.60% at 1.0886.
Hourly Chart
On the daily candle chart, the rate was testing the low level of April and March near the 1.0775 mark. This level was expected to strengthen the support of the monthly S1 simple pivot point.
Daily chart
Read More: Technical Analysis
Traders remain short
At the middle of Tuesday's GMT trading hours, 71% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
By mid-day on Wednesday, the sentiment was 72% short. Traders have been gaining from the most recent decline.