As expected, the EUR/USD surged above the resistance of the weekly pivot point at 1.1153. However, the gains of the rate were limited, as it traded sideways between 1.1150 and 1.1160 in the aftermath of the event.
In regards to the near term future, the rate most likely will trade sideways until the publication of the US Federal Reserve Interest Rate. If the expected rate cut occurs, the currency exchange rate should surge due to a drop of the US Dollar's value.
US FOMC in focus
This week top attention will be paid to the US Federal Reserve's Federal Open Markets Committee announcements on Wednesday at 18:00 GMT.
In general, the markets expect a US Dollar interest rate cut. Besides that each monetary policy announcement since November 2018 has caused a move on the EUR/USD in the range from 28.0 to 57.8.
In addition, note that the financial media might comment and look at the US ADP Non-Farm Employment Change that is scheduled to be published on Wednesday at 12:15 GMT.
However, historical data reveals that during the time period of five minutes before the release and five minutes afterwards the EUR/USD has moved from 9.6 to 15.3 pips since August 2018.
On Thursday, the ISM Manufacturing PMI will be published at 14:00 GMT. This event has caused moves from 13.1 to 20.9 base points.
On Friday, the US employment data will be published. It will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the official Unemployment Rate. This release has caused moves from 13.3 to 48.0 base points.
EUR/USD hourly chart's review
On Wednesday, the EUR/USD traded in the range between 1.1150 and 1.1160. From below it had the support of the weekly pivot point at 1.1153 and above it the 200-hour simple moving average was located near 1.1165.In general, the pair was expected to trade sideways until the FOMC announced the US Federal Reserve Interest Rate target at 18:00. If an expected rate cut occurs, in theory, the currency exchange rate should surge.
On the other hand, if the market is disappointed with the monetary easing, a decline of the EUR/USD could occur.
Hourly Chart
Currently, on the daily candle chart there are no additional technical support or resistance levels to note.
The closest by technical support was located at 1.1050. Meanwhile, closest by technical resistance was provided by a 61.80% Fibonacci retracement level at 1.1203.
Meanwhile, take into account that the daily simple moving averages were located near 1.1250. It indicates that the pair is oversold.
Daily chart
Since Friday, 65% of open EUR/USD position volume on the Swiss Foreign Exchange has been in short positions.
Meanwhile, trader set up pending orders in 100-pip range around the pair were bearish, as 55% of all orders were set to sell and 45% were to buy.