The EUR/USD dropped to the 1.1210 level at the end of the previous week.
On Monday morning, the currency exchange rate was trading at the monthly S1 located at the 1.1220 mark.
The European Common Currency depreciated against the US Dollar, following the US Retail Sales data release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate lost 13 pips or 0.11% right after the release. The Euro continued trading at the 1.1215 level against the Greenback.
Census Bureau released the US Retail Sales data, which came out better-than-expected of 0.4% compared with the forecast of 0.1%.
According to the Commerce Department, last month households increased purchases of motor vehicles and a range of other goods. This advance indicates strong consumer spending, which could contribute to the US economy.
Data releases from EU are on focus
This week the data that will impact the EUR/USD exchange rate will come from the European Union.
On Tuesday, the French Flash Services PMI data release will occur at 7:15 GMT. Last time, this release caused a nineteen-pip move. At the same day, the German Flash Manufacturing and Services PMIs data will be released at 7:30 GMT. The previous release caused a thirteen-pip move.
On Thursday, the ECB Monetary Policy Statement will be published at 11:45 GMT. Last time, this release caused a forty-pip move in the EUR/USD pair. Also, the US Core Durable Goods Orders data will be released at 12:30 GMT. Previously, this data release caused only a four-pip move.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT. The previous data release caused a 24-pip move.
EUR/USD hourly chart's review
On Friday, the EUR/USD currency pair declined to the 1.1210 level. During today's morning, the pair was trading at the monthly S1 located at 1.1220.Note, that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located in the 1.1229/1.1243 range. Thus, it is likely, that the rate could go downwards to re-test the lower boundary of the short-term ascending channel at 1.1205.
It is unlikely, that the pair could breach the given channel south due to the support level formed by the Fibonacci 23.80% retracement at 1.1200. However, if the given support does not hold, it is unlikely, that the rate could drop lower than the weekly S1 at 1.1187.
Hourly Chart
On the daily candle chart, the recent jump broke the upper trend line of the descending channel pattern and the 55 and 100-day simple moving averages.
Meanwhile, note that the resistance levels above the 1.1300 level were about to be strengthened by the 200-day simple moving average.
Daily chart
On Monday, 72% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were neutral, as 51% of all orders were set to sell and 49% were to buy.