Economic Calendar Analysis
On Thursday, the EUR/USD is set to react to the expected 0.50% European Central Bank Main Refinancing Rate hike at 13:15 GMT. The ECB has revealed that it is set to combat inflation with subsequent 0.50% interest rate hikes.
In addition, note that more volatility could be caused by the press conference hosted by the management of the central bank at 13:45 GMT.
EUR/USD hourly chart
A move below the support levels near 1.0540 could look for support in the 1.0500 mark, prior to approaching the 1.0450 level and the weekly S2 simple pivot point. Further below, note the 1.0400 mark and the weekly S3 simple pivot point at 1.0365.On the other hand, a potential recovery of the Euro might be caused by the ECB. In this case scenario, the pair would recover and face the 1.0600 mark, the weekly simple pivot point at 10.621 and the moving averages higher above.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair bounced off the combined resistance of the 50-day simple moving average, the 2022 December high level zone and the upper trend line of a channel down pattern. The channel captures the pair's decline since the bounce off from the 1.1000 mark.Daily chart
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Traders are going long
On Tuesday, trader open positions were neutral, as 50% of open position volume was in long and short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the Euro against the USD.
On Wednesday, traders were 54% long and orders were 53% to buy.