The decline reached the support of the 1.0820 level and once again started a surge, which was expected to once again test the retracement level.
Economic Calendar Analysis
This week is set to start with the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers about a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
The FOMC is set to be followed by the European Central Bank on Thursday, at 11:45 GMT. The ECB is set to make a rate publication and release its Monetary Policy Statement.
In addition, note the US Unemployment Claims on Thursday at 12:30 GMT. Moreover, the US ISM Manufacturing PMI is scheduled to be published on Friday at 14:00 GMT.
EUR/USD hourly chart's review
During today's morning, the pair skyrocketed to the Fibo 23.60% at 1.0868.It is likely that the exchange rate could gain support from the 55– and 200-hour SMAs near 1.0840 and trade upwards in the short run. However, note that the rate would have to surpass the 23.60% Fibo, as well the weekly R1 at 1.0905.
If the given resistance holds, it is likely that the Euro could consolidate against the US Dollar within the following trading session.
Also, it is unlikely that bears could prevail in the market, and the currency pair could decline below the support level formed by the 100-hour SMA and the weekly PP at 1.0816.
Hourly Chart
On the daily candle chart, the pair could find additional resistance in the 55-day simple moving average, which was located near the 1.0950 mark.
Meanwhile, the 100 and 200-day SMAs were located at 1.1010 and 1.1040.
Daily chart
Read More: Technical Analysis
Traders remain short
Despite the recent surge of the rate, traders continue to short the EUR/USD.
Since the middle of Tuesday's GMT trading hours, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.