Since mid-June, the EUR/USD was trading between the support zone at 1.0665/1.0670 and resistance at 1.0745/1.0760. On the first day of July's trading, the resistance zone was broken.
However, it was not followed by a surge, as by mid-day the pair was impacted by the lower than forecast EU Purchasing Managers Indices. Later on, the rate got a boost from low US PMI results. It is expected that the rate will continue to react to data releases, as this week's calendar is full.
Economic Calendar Analysis
Monday's top event was the US ISM Manufacturing PMI release at 14:00 GMT. The markets are taking in the data and adjusting to the reveal. Results are worse than expected, which is causing a decline of the US Dollar.
On Tuesday, the EUR/USD is set to move due to the publication of the Euro Zone Consumer Price Index data at 09:00 GMT.
Later on, at 14:00 GMT, the JOLTS Job Opening data will reveal how many jobs are available in the United States. The data will impact the markets through the value of the US Dollar.
Throughout Wednesday, there will be a number of releases that could cause a Dollar move. At 12:15 GMT ADP Non-Farm Employment Change will be published. At 12:30 GMT, the weekly Unemployment Claims might cause a move. At 14:00 GMT, the ISM Services PMI is set to be published. The day will end with the release of the US Federal Reserve Federal Open Markets Committee Meeting Minutes at 18:00 GMT.
On Friday, the top event of the week will take place. At 12:30 GMT, the United States employment data sets will be published. This release is most certainly going to create volatility.
EUR/USD hourly chart analysis
In the near term future, the pair will wait for more data before either surging higher or returning to trade near the 1.0700 mark. A potential decline is set to look for support in the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.0708/1.0720. Further below, note the weekly S1 simple pivot point and the 1.0665/1.0670 support range.On the other hand, a recovery of the Euro against the US Dollar could be slowed down by the weekly R2 simple pivot point at 1.0788 and the 1.0790/1.0800 range.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has dropped below the daily simple moving averages. However, support has been found in the 1.0635/1.0700 range.If the EUR/USD recovers, the 50, 100 and 200-day simple moving averages could act as resistance. On the other hand, a decline of the pair below 1.0635 and 1.0600 could result in the rate looking for support in the 1.0520/1.0535 range.
Daily chart
Read More: Technical Analysis
Traders are long
Dukascopy traders are bullish on the EUR/USD, as 58% of open position volume is in long positions.
Meanwhile, pending orders in the 100-pip range around the current rate are 53% to buy the Euro against the US Dollar.