On the EUR/USD charts it resulted in a test and failure at passing the resistance zone at 1.0865/1.0875.
Economic Calendar Analysis
This week, watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
EUR/USD hourly chart
At mid-day on Wednesday, the pair started a decline, which could look for support in the combination of the 50 and 100-hour simple moving averages near 1.0820. Further below note the 1.0800 mark, the weekly simple pivot point at 1.0779. In the case of the rate passing these levels, the combination of the 1.0750 level and the 200-hour simple moving average might stop a decline.On the other hand, a surge of the Euro against the US Dollar would once again face the 1.0865/1.0875 zone. The zone has held since January 12 and has caused four bounce offs from it.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair continues to pass one resistance level after another, as the pair has reached above the May 2022 high of 1.0790.Meanwhile, previous resistance zones and levels are being observed as turning into support.
Daily chart
Read More: Technical Analysis
Traders are short
Prior to the US PPI release, trader open positions were bearish, as 60% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 58% to buy the Euro against the USD.
On Tuesday, traders were 58% short and orders were 56% to buy.