Economic Calendar Analysis
This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
EUR/USD hourly chart
An extension of the ongoing decline of the Euro against the US Dollar is expected to look for support in the 1.1000 mark and the weekly S2 simple pivot point at 1.1002.Further below, note the 1.0930/1.0950 range.In the case of a recovery of the European currency against the Dollar, the rate would have to pass the combined resistance of the weekly S1 simple pivot point at 1.1063 and the 50-hour simple moving average. Above these levels, take into account the descending 100-hour simple moving average near 1.1135.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has broken the channel down pattern that guided the rate down since April. Moreover, the support of the 50 and 100-day simple moving averages was enough to cause a surge above the 1.1130/1.1190 range.If the rate continues to surge, resistance is expected to be found in the 2022 high level range at 1.1470/1.1495. Daily chart
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Traders are shorting
On Monday the Swiss Foreign Exchange, traders were 71% in short positions.
Meanwhile, trader set up pending orders in a 100 point range around the current rate were 53% to sell the Euro against the US Dollar.
On Tuesday, positions were 66% short and orders were 55% to sell.