During its decline, the rate passed one technical resistance after another and approached the 1.1700 level.
Economic Calendar Analysis
Notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
It is likely that the exchange rate could gain support from the 55-hour moving average near 1.1690 and trade upwards in the short run. In this case the rate could face the resistance formed by the weekly R2 and the 2019 high circa 1.1820.However, if the given support does not hold, it is likely that some downside potential could prevail. Meanwhile, it is unlikely that the currency pair could decline below the weekly PP and the monthly R2 at 1.1575.
Hourly Chart
On the daily candle chart, the channel up pattern continues to guide the currency exchange rate higher. Note that its upper trend line could provide resistance near the 1.1830 level.
In the meantime, the daily simple moving averages indicate that the pair is overbought, as the closest by 55-day SMA is located near 1.1240.
Daily chart
Read More: Technical Analysis
Short sentiment declines
On Monday, on the Swiss Foreign Exchange 66% of all EUR/USD open position volume was in short positions. It was 70% short on Friday.
By the middle of Tuesday's GMT trading hours, the sentiment was 62% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were set to buy in 65% of all cases.
Previously, the orders were 51% to sell.