From a theoretical perspective, it is likely that the pair could re-test the lower channel line in the nearest future.
Economic Calendar Analysis
This week, monthly US inflation and retail sales data sets are bound to be cause notable reactions, as they have done in the past. Namely, the US PPI on Wednesday and the US Retail Sales on Friday are being released at 12:30 GMT.
In the meantime, the German Preliminary GDP could cause a reaction on Friday at 06:00 GMT, despite causing no notable moves and being ignored during the last year.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair revealed a short-term ascending channel. During today's morning, the pair was testing the support formed by the 55– and 100-hour SMAs near 1.0830.Note that the exchange rate is pressured by the 200-hour SMA and the weekly PP near 1.0860. Thus, some downside potential could prevail in the market, and the rate could re-test the lower channel line located in the 1.0800 area.
However, if the given support holds, it is likely that the Euro could consolidate against the US Dollar within the following trading session.
Also, it is unlikely that bulls could prevail in the market, and the currency pair could breach the given channel north due to the resistance level—the Fibo 23.60% at 1.0886.
Hourly Chart
On the daily candle chart, the rate has bounced off the low level of April and March near the 1.0775 mark. This level strengthened the support of the monthly S1 simple pivot point.
Note that the pair is pressured by the 55-, 100- and 200-day moving averages in the 1.0955/1.1030 range.
Daily chart
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Traders remain short
On Wednesday, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.