Note that the currency pair is bound to remain rather flat until the Wednesday's 18:00 GMT Federal Reserve Interest Rate hike and follow up press conference.
Economic Calendar Analysis
All attention of the markets will be on the US Federal Reserve Fed Rate hike on Wednesday at 18:00 GMT. All markets will react to the hike and the following press conference of the Chairman of the Federal Reserve at 18:30 GMT.
In addition, note the European Manufacturing and Services sector Purchasing Managers Indices on Friday. The European country data will be published from 08:15 GMT up to 09:00 GMT.
EUR/USD hourly chart
A potential extension of the surge due to less hawkish Fed could face resistance in the 1.0735/1.0760 zone. This zone captures the pair's March high levels. Higher above, the weekly R1 simple pivot point might slow down the Euro against the USD.However, a larger than expected rate increase by the Federal Reserve is set to cause a drop of the currency exchange rate. In this case scenario, the pair would look for support in the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point near 1.0650. Below, 1.0650 note the February and March low level zone at 1.0515/1.0535.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair once again tests 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 short
Prior to the US rate hike, trader open positions were bearish, as 55% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to buy the Euro against the USD.