Economic Calendar Analysis
During the upcoming week, the currency pair is most likely going to be impacted by a couple of events.
On Thursday, the German Preliminary Consumer Price Index will reveal how inflation has done in the biggest economy of the Euro Zone. The European Central Bank watches the data, as it makes decisions on monetary policy.
On the same day, at 12:30 GMT, the publication of Final US quarterly Gross Domestic Product is set to be published. The release might impact the USD. However, it is usually the Preliminary GDP release, which impact the markets.
On Friday, the US Core PCE Price Index is set to reveal inflation's impact on the consumers. This indicator is seen by the US Federal Reserve as more important than the CPI. The publication is scheduled for 12:30 GMT.
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 100-hour simple moving average. Further below, note the weekly R1 that might act as support, before the pair reaches the 1.0750 level.On the other hand, a recovery of the Euro against the US Dollar is expected to encounter resistance in the 1.0908/1.0930 range, prior to reaching 1.0950 and 1.1000.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has broken the resistance zone near 1.0725. Moreover, the channel down pattern has crumbled due to the change in monetary policy of the two currencies.However, note that the April high level at 1.0937 was observed to be acting as resistance. Higher above, the 2023 high at 1.1030 could stop the surge.
Daily chart
Read More: Technical Analysis
Traders are shorting the decline
On Friday, trader open positions were bearish, as 58% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 60% to buy the Euro against the USD.