The Euro depreciated against the US Dollar, following the EU Prelim Flash GDP data release on Tuesday at 10:00 GMT. The EUR/USD exchange currency rate lost 30 pips or 0.25% after the release. The Euro continued trading at the 1.2030 level against the Greenback after the release.
Eurostat released the EU Prelim Flash GDP data, which came out better-than-expected of negative 0.7% compared with the forecast of negative 0.9%.
Economic Calendar Analysis
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 10.4 to 16.9 pips.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 6.2 to 16.4 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The EUR/USD has moved 15.7 to 28.9 pips since September.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
On Monday, the EUR/USD currency pair pierced the support level—the weekly S1 at 1.2070.Given that the exchange rate is pressured by the 55– and 100-hour moving averages near 1.2100, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S2, is located at 1.2002.
In the meantime, it is unlikely that bulls could prevail in the market in the short term, and the currency pair could exceed the resistance formed by the 200-hour moving average and the weekly PP near 1.2130.
Hourly Chart
On the daily candle chart, the fundamental event provided the needed push for the pair to pass the support of the late December and January low level of 1.2050. It signals that the rate can decline even more.
In regards to the near term future, the pair could look for support in the 1.2000 level, which was strengthened by a 23.60% Fibonacci retracement level. In addition, the support of the 100-day simple moving average was approaching the rate near 1.1958.
Daily chart
Read More: Technical Analysis
Traders remain neutral
On Tuesday, on the Swiss Foreign Exchange trader open positions were opposite, as 52% of open position volume was in long positions.
On Monday, the sentiment was 52% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 72% to buy the pair.