Economic Calendar Analysis
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
EUR/USD hourly chart
A decline below the 100-hour simple moving average might look for support in the combination of the weekly simple pivot point at 1.0456 and the 1.0450. Further below, note the 200-hour simple moving average near 1.0435. The SMA could approach 1.0450 and provide additional support. In the case of the 1.0450 being passed, note the 1.0400 mark and the weekly S1 simple pivot point at 1.0367.On the other hand, a resumption of the Euro's recovery against the US Dollar is highly likely set to encounter resistance in the 50-hour simple moving average near 1.0520 and the 1.0550 level, before approaching the 1.0600 mark.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the recent surge has moved the rate once again above the 1.0350/1.0400 zone. The zone impacted the rate throughout 2021 and 2022 as support and resistance.Meanwhile, it appears that despite being pierced, the 200-day simple moving average has been acting as support.
In regards to the future, note that the 1.0600 and 1.0800 levels acted as resistance in May and June.
Daily chart
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Traders go short on EUR/USD
On Tuesday, on the Swiss Foreign Exchange, trader open positions were short, as 58% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 51% to sell the Euro against the USD.
On Monday, the sentiment was still 58% short and orders were 52% to buy.