Economic Calendar Analysis
On Friday, the release of the US Retail Sales data at 12:30 GMT could also cause an increase of volatility.
EUR/USD hourly chart's review
By the middle of Wednesday's European trading hours, the currency exchange rate had recovered and was expected to reach the resistance of the 55, 100 and 200-hour simple moving averages near 1.1830/1.1840. In the case that the pair passes these levels, the EUR/USD would aim at the weekly simple pivot point at 1.1852 and afterwards the 1.1900.On the other hand, a bounce off from the resistance of the simple moving averages, could result in a test of the support of the new July low level at 1.1773.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has breached the support zone that surrounds the 1.1850 mark. In theory, the March low level near 1.1700 could be reached.Meanwhile, a potential recovery would have no technical resistance as high as the 1.2000 level, where a 23.60% Fibonacci retracement level is located together with the 100 and 200-day simple moving averages.
Daily chart
Read More: Technical Analysis
Long sentiment grows
Since Monday, on the Swiss Foreign Exchange traders open positions were long, as 61% of open position volume was in long positions.
On Wednesday, the open position volume changed and was 63% long.
On Wednesday, trader set up pending orders in the 100-pip range around the pair were 50% to sell the pair and 50% to buy the EUR/USD.