Note that the pair could face the resistance near 1.1960 provided by the weekly R1 and the 2020 high.
Economic Calendar Analysis
The first week of the month is upcoming. It is set to reveal monthly data sets, which are expected to cause notable currency rate adjustments.
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published. This event has caused moves on the EUR/USD from 7.0 to 23.8 pips. Note that the largest moves were the most recent ones.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published. A EUR/USD move from 8.9 to 26.5 pips is possible.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair jumped to the 1.1920 level. During today's morning, the pair was testing the given level.From the one hand, it is likely that some upside potential could prevail in the market, as the exchange rate should target the upper line of the medium-term ascending channel circa 1.1990.
Meanwhile, note that the rate would have to exceed the 2020 high, as well the weekly R1 at 1.1963. If the given resistance holds, it is likely that a reversal south could occur.
Hourly Chart
On the daily candle chart, the pair is consolidating in the borders of a channel up pattern.
Take into account the strong cluster of support levels near 1.1710. Namely, the rate could meet at that level the weekly S1, 38.20% Fibonacci retracement level and the lower trend line of the channel pattern.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, on the Swiss Foreign Exchange 69% of all EUR/USD open position volume was in short positions.
On Thursday, the sentiment was 65% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 51% of all cases.
Previously, the orders were 55% to sell.