The markets are set to be directed by the US Federal Reserve on Wednesday at 19:00 GMT. However, until then the rate could continue to respect technical levels.
Economic Calendar Analysis
On Wednesday, the top event of them all is set to take place. The release of the US Federal Reserve Federal Funds Rate and the FOMC Statement at 19:00 GMT. Afterwards, at 19:30 GMT, the head of the Federal Reserve Jerome Powell is set to host a press conference.
Note that the ADP Non-farm Employment Change publication is also scheduled for Wednesday. It is most likely that I won't cause an impact, as the markets will wait for the Fed rate.
On Thursday, the US ISM Manufacturing Purchasing Managers Index is set to be published at 15:00 GMT. A big deviation from the forecast could cause a market reaction
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
EUR/USD hourly chart analysis
A continuation of the Euro surge against the US Dollar could encounter resistance in the 100-hour simple moving average near 1.0850. Higher above, note the weekly simple pivot point at 1.0865 and the 200-hour simple moving average. These levels have to be broken for the rate to return to 1.0900.On the other hand, a decline of the pair is expected to look for support in the 1.0820/1.0830 range and the combination of the 1.0800 mark and the weekly S1 simple pivot point at 1.0798.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the lower trend line of the channel pattern and the 50-day simple moving average have failed to hold through the last decline. After the breaking of the pattern, the 200-day simple moving average appeared to be acting as support.Most recently, the 200-day SMA also failed. The 100-day SMA was tested on Monday. It could be that the pair is forming a new channel down pattern.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, traders were 51% short, as that proportion of all open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the pair were 58% to buy.
On Tuesday, open positions were 52% short and orders were 51% to sell.