On Thursday morning, the EUR/USD traded near previous session's levels by bouncing around the 1.1200 level.
Meanwhile, note that the rate had passed below all of the technical levels, which in theory signals that the pair should decline.
On Wednesday, May 1, the Federal Open Market Committee decided to left the key benchmark rate unchanged at the 2.50% level.
The US policymakers remain to use "wait-and-see" approach described earlier this year ahead of June's updated economic forecasts.
Surprisingly, the Fed cut the IOER (Interest Rate on Excess Reserves) rate by 0.05% to 2.35%. Analysts think that this reduction might signal the beginning of an easing cycle.
US Producers Price Index could impact EUR/USD
On Thursday, at 12:30 GMT the Canadian Trade Balance and the US Producers Price Index will be released. These events can cause a move from five to eighty pips. The range is explained in the weekly Economic Calendar Overview video.On Friday, there will be two times to watch the calendar.
At 08:30 GMT the UK GDP and Manufacturing Production will be published. This event can cause a move of fifteen to twenty pips.
At 12:30 GMT the Canadian Employment data will cause a move of about forty pips. At the same time the US Consumer Price Index release should cause a move of up to twenty pips. Combined they can have various impacts on the Forex market.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
EUR/USD hourly chart's review
On the hourly chart the EUR/USD has dropped below all of the technical levels that are located from the 1.1180 to 1.1202 level. In that range five technical levels are providing resistance to the rate. Meanwhile, there is no support as low as 1.1160.In theory, the currency exchange rate should decline down to the trend line of an ascending channel pattern near 1.1160.
On the other hand, the EUR/USD has been observed recently as the pair, which ignores the technical levels. It could trade sideways and ignore the technical chart.
Hourly Chart
On the daily candle chart, there is additional new information to take into account.
The 55-day simple moving average had approached the weekly R1 and began to strengthen it.
Daily chart
On Thursday, on the Swiss Foreign Exchange 72% of the total open position volume was in short positions.
Traders expect the pair to decline.
Meanwhile, trader set up pending orders in the 100-pip range were bullish. Namely, 55% of all orders were set to buy.