Economic Calendar Analysis
This week, various events will impact the markets. In general, fundamentals are set to impact the currencies.
On Tuesday, at 15:00 GMT, the Consumer Board Consumer Confidence index is set to reveal how the consumers are looking into the future.
On Wednesday, the ADP Non-Farm Employment Change, JOLTS Job Openings and ISM Manufacturing PMIs might cause moves in the USD. The releases will occur at 13:15 GMT and 15:00 GMT.
Afterwards, at 19:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate. The central bank is expected by the markets to increase its interest rate from 4.50% up to 4.75%. The announcement will be followed by a press conference of the Chairman of the Federal Reserve Jerome Powell at 19:30 GMT.
On Thursday, the European Central Bank is scheduled to hike its Main Refinancing Rate at 13:15 GMT. The Press Conference of the central bank is scheduled for 13:45 GMT.
On Friday, the US monthly employment data will be published at 13:30 GMT. The release will consist of Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
EUR/USD hourly chart
An extension of the decline of the Euro against the US Dollar might look for support in the 1.0800 mark and the weekly S2 simple pivot point at 1.0782. Further below, note the weekly S3 simple pivot point at 1.0729.On the other hand, a recovery of the currency exchange rate would most likely face resistance in the 1.0835/1.0840 zone. Higher above, note the 1.0860 level and the spread out 50, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 1.0865/1.0880 range.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair continues to pass one resistance level after another, as the pair has reached above the May 2022 high of 1.0790. Next resistance is the April high level at 1.0937.Meanwhile, previous resistance zones and levels are being observed as turning into support.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Monday, trader open positions were bearish, as 66% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 50% to sell the Euro against the USD.
On Tuesday, the sentiment was 63%, as some traders had closed their short positions during the decline. In the meantime, the pending orders were 59% to buy.