Economic Calendar Analysis
This week, the markets will concentrate first on the US CB Consumer Confidence release on Tuesday at 14:00 GMT. A surprise in the consumer sentiment reading could move the US Dollar.
On Wednesday, the Euro might be impacted by the publication of the German Preliminary Consumer Price Index data. A divergence from the market consensus forecast is highly likely going to cause a move.
On Thursday, at 12:30 GMT the publication of the United States Preliminary GDP and Unemployment Claims could impact the market via a move of the USD.
On Friday, the top event of the week will take place, as at 12:30 GMT the US Core Personal Consumption Expenditure Index monthly change will be published. If the data shows that inflation is not decreasing, the US Dollar is bound to surge. Higher than expected inflation is set to pressure the US Federal Reserve to hike the Dollar's base interest rate.
EUR/USD hourly chart analysis
A move above the 1.0875/1.0885 range and the weekly R1 simple pivot point at 1.0885 is expected to encounter resistance in the 1.0900 mark. Higher above, the weekly R2 at 1.0925 could act as resistance.In the case of a decline, the pair is set to first find support in the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.0835/1.0850. Further below, note that the 1.0820 and 1.0810 levels have acted as support. In addition, the weekly S1 might stop a decline at 1.0806. If these levels fail, the 1.0800 could once again come into play.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate is above the resistance of the upper trend line of the pattern that captured the move of the last months. Moreover, the 50, 100 and 200-day simple moving averages were broken.Most recently, the 100 and 200-day simple moving averages appear to have turned into support near the 1.0800 mark.
Daily chart
Read More: Technical Analysis
Dukascopy traders are shorting
On Monday, traders were 57% short on the pair. That proportion of all open Swiss Foreign Exchange positions was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the pair were 68% to buy.
A majority of traders has been short since the start of last week.