On the EUR/USD charts the event caused a 56 base point or 0.51% drop. From a technical perspective the fundamental event provided the needed push for the pair to pass below the 1.0835/1.0845 range. After the initial drop a follow up decline started, as the rate appeared to be heading to the 1.0800 mark.
Economic Calendar Analysis
On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
EUR/USD hourly chart
A move below 1.0800 level could look for support in the weekly S2 simple pivot point at 1.0775 or the combination of the 1.0700 mark and the weekly S3 simple pivot point at 1.0707.On the other hand, a potential recovery is expected to encounter resistance in the weekly S1 at 1.0822 and the mentioned 1.0835/1.0845 range, Higher above, note the 1.0860 level and the 50 and 100-hour simple moving averages.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair found support in the combination of the 200-day simple moving average and the 1.0850 mark, as it was forecast to be possible. Previously, the rate appeared to be squeezed in between the support of the mentioned levels and the resistance of the 100-day simple moving average near 1.0925.On Wednesday, the pair passed below the 200-day simple moving average and approached the 1.0800 mark.
Daily chart
Read More: Technical Analysis
Traders are bullish
On Tuesday, the Swiss Foreign Exchange traders were 59% in long 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.
By mid-Wednesday, positions were 62% long and orders were 52% to sell.