On Wednesday morning, the pair had retreated and once again tested the support of the 1.2120 level.
Economic Calendar Analysis
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement and Federal Funds Rate at 19:00 GMT. The EUR/USD rate has moved from 10.8 to 68.1 pips on the announcements that have occurred since June.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time. The GDP has caused minor moves from 7.9 to 13.6 pips since October 2019.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
It is likely that some downside potential could prevail in the market due to the resistance area formed by the 55-, 100– and 200-hour SMAs and the weekly PP in the 1.2130/1.2160 range.Note that the exchange rate could face the support level formed by the weekly S1 at 1.2089. If the given level holds, a reversal north could occur. Otherwise, the rate could reach the 1.2070 mark.
Hourly Chart
On the daily candle chart, the pair is heading upwards, supported by the 55-day moving average.
A likely target for a surge would be the January high level of 1.2350.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, on the Swiss Foreign Exchange trader open positions were bearish, as 56% of open position volume was in short positions.
On Monday, the sentiment was 57% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 62% to buy the pair.