In the meantime, the 50 and 100-hour simple moving are within previous weeks fx rate range, thus creating a higher probability scenario of a reversal if there would be market parameters that would allow such condition.
Economic Calendar Analysis
This week's macroeconomic data, including consumer prices and producer price indexes, could potentially bring higher volatility compared to the previous week.
Additionally, on Thursday, the European Central Bank (ECB) will announce its decision on interest rates and provide commentary on monetary policy, which could lead to unexpected volatility, especially on the day the Main Refinancing Rate is released.
EUR/USD hourly chart analysis
The EUR/USD pair has been trading within the 1.05000 to 1.05888 price range for most of the previous trading week. Market sentiment could shift if upcoming macroeconomic data indicates a potential change in the future demand for the Euro or the US Dollar.A decline in the FX rate is possible, as the simple moving averages on the hourly time frame suggest the FX rate is currently trading around these levels. If the 1.05000 support is broken, further price movement towards the 1.04620 level is plausible, along with the continuation of the downward trend.
Hourly Chart
EUR/USD daily chart's review
On the daily candlestick chart, the simple moving averages are significantly above the current FX rate. A price of 0.98 could be a possible level if sudden geopolitical changes occur. Considering that President-elect Donald J. Trump is an "America First" president, the decisions made during his presidency are likely to impact global markets, with a focus on policies that promote U.S. dominance.The ongoing decline could possibly continue if dollar strength rises in the broader market.
Meanwhile, a potential recovery will face the 1.0726 level and the 1.0726/1.0770 zone.
Daily chart
Read More: Technical Analysis
Traders stick to long positions
Before the US elections, traders were 58% in bullish positions. Traders were expecting a recovery of the pair.
Current trader sentiment sugessts mayority of traders are anticipating recovery of the EUR/USD recovery towards higher price levels.
This week, traders had added to the long positions, as 70% were already long, 30% short. Everyone appears to be expecting a retracement back up.
In addition, more positions could be opened, as 47% of orders were to buy.