Due to that reason, the pair faced the support of the monthly pivot point at 1.1246, which was the only support level left above the 1.1200 mark.
Economic Calendar Analysis
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a 4 EUR/USD pip move, which is below normal volatility.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair consolidated in the 1.1300 area. During today's morning, the pair was testing the support formed by the weekly PP and the monthly R1 at 1.1250.It is likely that the exchange rate could be pushed down by the 55– and 100-hour SMA near 1.1300. In this case the rate could gain support from the Fibo 38.20% and the 200-hour SMA at 1.1200.
However, if the given support at 1.1250 holds, it is likely that a reversal north could occur and the pair could target the monthly R2 at 1.1385. However, if the hourly SMAs keep the rate down, the rate could trade sideways.
Hourly Chart
On the daily candle chart, the rate appears to be declining in the aftermath of a too sharp surge, which made the pair overbought. One of the indicators of the rate being overbought is the fact that the daily simple moving averages have been left near the 1.1000 mark.
Daily chart
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Traders stick to short positions
On Tuesday, on the Swiss Foreign Exchange 72% of all EUR/USD open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 55% were set to buy.