On Tuesday morning, the EUR/USD traded below the 1.1000 level, which had been providing resistance since the middle of Monday's trading session.
The rate was expected to continue to trade at that level until the resistance of the 55 and 100-hour simple moving averages approach from the above and push the rate down.German Flash Manufacturing and Services PMIs
The European Common Currency depreciated against the US Dollar, following the German Flash PMIs survey results release on Monday at 07:30 GMT. The EUR/USD exchange currency rate lost 15 pips or 0.14% right after the release. The Euro continued trading at the 1.0975 level against the US Dollar.
Markit released the German Manufacturing PMI survey result, which came out worse-than-expected of 41.4 compared with the forecast of 44.6.
According to the official release: "The German economy contracted in September, latest flash PMI data showed, as the downturn in manufacturing deepened and service sector growth lost momentum. Job creation meanwhile stalled as firms reported weakening demand and pessimism towards the outlook for activity. The fall in output was accompanied by easing price pressures, with average charges for goods and services rising at the slowest rate for over three years."
US Releases Might Cause Minor Moves
On Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the EUR/USD from 5.2 to 26.4 pips since June 2018.
Note that during the last two releases the pair moved only 5.2 and 7.6 pips, which is irrelevant.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the EUR/USD moved from 5.4 to 10.9 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
EUR/USD hourly chart's review
Yesterday, the EUR/USD currency pair tested the support level formed by the weekly S1 at 1.0979. During Tuesday morning, the pair was trading near the 1.1000 mark.If the given support level holds, it is likely that the Euro could appreciate against the US Dollar in the short term. However, note that the exchange rate has to surpass the resistance cluster formed by the 55-, 100- and 200-hour SMAs, as well the weekly PP in the 1.1012/1.1038 range.
On the other hand, the Euro could continue to trade sideways against the Greenback within the following trading session. Also, it is unlikely that bears could prevail in the market, and the rate could decline lower than 1.0960 due to the lower boundary of the medium-term ascending channel.
Hourly Chart
On the daily candle chart, the rate's decline was consistent with the long term descending channel pattern. The rate has clearly broken off the upper trend line of the pattern.
The rate should continue to decline in the pattern until the middle of October.
Daily chart
Since last Tuesday, 66% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
These positions most likely are in the green, as the rate is clearly below last Tuesday's levels.
Meanwhile, pending trade orders were mostly to buy, as 64% of orders in the 100-pip range were set to buy.
It was assumed that these are stop losses and take profits of the short positions and buy to open long orders in case of a retracement back up.
Previously, 70% of orders were to buy.