Although we are expecting an incredibly busy week, the first part of it will be incredibly dull and quiet. That is unless something unexpected happens like sudden changes in the rhetoric of European Central Bank representatives. Several officials are scheduled to speak today. However, it is highly unlikely that any of these officials will suddenly announce a rate cut during the upcoming ECB meeting. So, we expect the single currency to trade in a relatively narrow range, as it did throughout the past week.
During the pullback phase, EUR/USD returned to the level of 1.0800, which it previously passed. The area where December's local low is located acts as support for the bears. This is where the volume of long positions had recently increased.
On the four-hour chart, the RSI technical indicator is hovering in the upper area of 50/70, which points to the growth in the volume of long positions.
Meanwhile, the Alligator's MAs are intertwined in the 4-hour chart, indicating a slowdown in the downward cycle.
Outlook:In order to increase the volume of long positions, the price must settle above the level of 1.0800. This may point to the recovery process in the euro. Regarding the bearish scenario, the level of 1.0800 may serve as resistance for the bulls. In this case, traders may attempt to update the local low of December.
The complex indicator analysis points to a pullback phase in the short-term and intraday periods.