Afterwards, the markets were looking forward to the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. In general, the head of the central bank stated that there are no expectations of Fed Funds Rate cut. The only way the policymakers would ease the rate would, if something breaks. Namely, unemployment bounces above 4.0% or the banking sector crashes.
These comments caused a surge of the US Dollar that beat down the stock market. However, by mid-Thursday, a recovery was taking place in the market. The EUR/USD rate had returned back to 1.0880 and was expected to return to 1.0900.
Economic Calendar Analysis
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 surge of the Euro against the US Dollar is set to face the resistance of the 1.0900 mark and the weekly R1 simple pivot point at 1.0918. Higher above, take into account the weekly R2 at 1.0985 and the 1.1000 mark.However, a decline of the European currency against the USD is set to look for support in the weekly simple pivot point at 1.0865, the 200-hour simple moving average near 1.0850, the 50 and 100-hour SMAs in the 1.0820/1.0830 range, the 1.0800 mark and the weekly S1 simple pivot point at 1.0798. In addition, it appears that the prior resistance line has turned into a support line. In general, the pair has a lot of technical support.
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 throughout this week. It could be that the pair is forming a new channel down pattern.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Thursday, traders were 54% 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 62% to sell.
Before the rate announcement, open positions were 52% short and orders were 51% to sell.