On Monday morning, the EUR/USD faced no short term technical resistance as high as 1.1250. Although, it did not necessarily indicate that a surge will take place.
The rate had previously surged above the technical level cluster near 1.1230 and below all supports at 1.1220. None of the events caused a sharp move up or down.
The European Single Currency appreciated against the US Dollar, following the US Employment data set release on Friday at 12:30 GMT. The EUR/USD exchange rate gained 18 pips or 0.16% right after the release. The Euro continued trading at the 1.1230 level against the US Dollar.
The Bureau of Labor Statistics released the US Non-Farm Employment Change, which came better-than-expected of 196K compared with forecasted 172K. Note, that the US Average Hourly Earnings and the Unemployment Rate were released at the same time.
On March, the US economy generated more jobs than expected, and the confidence in the state of labor market strengthened. Also, the slowdown in wage inflation supported the Fed's resolution to lessen further policy tightening.
Most data releases are on Wednesday
This week data releases are set to start on Wednesday. On that day the calendar is full of events that have impacted various currencies in the past.During the morning hours of the day the UK GDP and Manufacturing Production are expected to cause an impact on the GBP currency pairs. The data release is scheduled to occur at 08:30 GMT.
At 11:45 GMT all attention will be given to the ECB. At that time the ECB Main Refinancing Rate and Monetary Policy Statement will be published.
Although, note that these European Central Bank announcements do not create the moves on the EUR pairs. They are caused by the ECB Press Conference, during which the President of the ECB reveals new information by answering questions. The press conference starts at 12:30 GMT.
Meanwhile, exactly at 12:30 GMT USD pairs will be impacted by the publication of the US Consumer Price Index data. This can cause a move of up to 20 pips on USD pairs.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
EUR/USD hourly chart's review
On the hourly chart the rate traded above all technical levels. The rate was finding support in the combination of a pivot point at 1.1219 and the 55, 100 and 200-hour simple moving averages that were located from 1.1220 to 1.1230.In general, the EUR/USD rate is expected to surge up to the 1.1250 level due to the support of the mentioned technical levels.
However, the rate could trade sideways above the technical levels until an ECB announcement takes place.
Hourly Chart
The daily chart reveals that the daily simple moving averages are far above it. Namely, the 55 and 100-day simple moving averages were located near the 1.1350 level.
This fact signals that the rate has declined sharply and thus can be considered oversold. Due to that the rate is expected to either surge or trade sideways on the daily chart.
The sideways trading is expected to occur in the borders between 1.1200 up to 1.1250.
Daily chart
On the Swiss Foreign Exchange the total open position volume is mostly short. Namely, 68% of all open position volume was short on Monday. Previously, on Friday, 65% were short.
Meanwhile, trader set up pending orders in the 100-pip range were neutral. Namely, the buy and sell orders were perfectly balanced. 50% were set to buy and 50% were set to sell.