On Friday morning, the EUR/USD continued the consolidation, which it started at the end of the Fed's caused surge.
In general, the rate is expected to resume its surge after it ends the sideways trading.
The European Common Currency appreciated against the US Dollar, following the US FOMC Statement and Federal Funds Rate data release on Wednesday at 18:00 GMT. The EUR/USD exchange currency rate gained 19 pips or 0.17% right after the release. The Euro continued trading at the 1.1250 level against the Greenback.
Federal Reserve released the FOMC Statement, where the US policymakers provided in-depth insights into the economic and financial conditions that influenced their vote on maintaining the Federal Funds Rate unchanged. Note, that FOMC Economic Projections were released at the same time.
The Fed suggested that it would cut the interest rate in 2020. The median target for the federal funds rate remains 2.4% for 2019. Note, that the Federal Reserve has not cut the rate since the financial crisis. However, recent employment data set and inflation data releases have led analysts to forecast cut rates in the future.
Next Week's events are described
Notable events for the EUR/USD have ended this week. Although, the historical data for the next week's scheduled events is available.
The data that is noted by the financial markets as important starts on Wednesday. On that day, the US Durable Goods Orders and Core Durable Goods Orders will be published at 12:30 GMT.
This event since February has caused moves from 5.1 to 18.0 pips. Moreover, the 18 pip was an anomaly, as the rest of the events have caused from 5.1 to 9.0 pips.
On Thursday, the US Final GDP will be published at 12:30 GMT. This is the least important GDP of the three quarterly publications of the US GDP. Since March 2018 this event has caused moves from 7.6 pips to 26.4 pips.
The full review of all of the notable events of next week will be conducted in a video and published on our Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On Friday morning the EUR/USD was continuing the consolidation in the 1.1280 to 1.1320 range. The sideways trading began on Thursday, at the end of the Federal Reserve's caused surge.It is expected that the rate will resume to surge when the consolidation ends. From a fundamental perspective it should occur due to the expectations of the recently revealed economic easing in the US.
Meanwhile, from a technical view, the 55- hour simple moving average is approaching the rate from below and should push it up by indicating that the rate is not overbought.
On the other hand, note that the rate might look for a stronger technical support by declining down to the 1.1250 level.
Hourly Chart
On the daily candle chart, the rate has bounced off the support of the monthly PP at 1.1180 and surged through the resistance of the 55 and 100-day simple moving averages.
The most notable fact of the daily candle chart is the approach of the 200-day simple moving average. The SMA was about to strengthen the monthly second resistance pivot point at 1.1338.
Meanwhile, our analysts have added an ascending channel pattern that was drawn by setting a reference point at the recent low level and the low level of May 30.
Daily chart
Since Wednesday, most traders were short, as 71% of open position volume on the Swiss Foreign Exchange were in short positions.
On Friday, the situation changed, as 69% of open EUR/USD position volume was in short positions. It indicates that some traders have closed their short positions after not seeing after the surge an immediate retracement down.
Meanwhile, trader set up pending orders in 100-pip range around the pair were in the neutral zone, as 51% of all orders were set to sell and 49% were to buy.