Economic Calendar Analysis
After the US reveal their policy, the rest of the world decides how to react on Thursday. Namely, the Swiss National Bank at 08:30 GMT, the Bank of England at 12:00 GMT and the European Central Bank at 13:15 GMT are all set to make rate announcements. The CHF, GBP and EUR are set to act to the rate announcements.
However, in most cases these banks do not surprise the financial markets. Moreover, they are all expected to follow the example of the Fed and keep their rates unchanged.
Meanwhile, note that the ECB President and Vice President are set to host a press conference at 13:45 GMT. Sometimes Christine Lagarde makes comments that impact the Euro and European stock indices.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
EUR/USD hourly chart analysis
In the case of the pair extending the recent gains, it could approach a resistance zone at 1.0960/1.0965 and the weekly R2 simple pivot point at 1.0964. The mentioned range represents a late November high and low level zone. Higher above, note the 1.1000 level and the October high level range at 1.1008/1.1017.On the other hand, if the Euro declines against the US Dollar due to a retracement note that the 1.0880/1.0888 range should be passed. Below the support range, the weekly R1 simple pivot point could turn into support despite being ignored during the Fed caused move. Further below take into account the 1.0825/1.0830 range and the ascending 50-hour simple moving average.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate waited between the support of the 50 and 100-day simple moving averages and resistance of the 200-day SMA. The event broke the resistance of the 200-day SMA.This break out to the upside could aim at the 1.1000 mark. Higher above, note the high level zones near 1.1100 and 1.1250.
Daily chart
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Traders remain neutral
From Monday up to just before the Fed release, the Swiss Foreign Exchange traders were 52% in long positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 51%-59% to sell the Euro against the US Dollar.
After the release, traders were 52% short. Meanwhile, orders 59% to sell.
It appears that a minority has taken profits from the surge, which has moved the neutral sentiment to be slightly short. In the meantime, traders have set up sell orders to benefit from a possible retracement.