The EUR/USD reacted to the news with an increase of volatility by fluctuating in a 60 base point range from 1.0750 down to 1.0690. In the aftermath of the initial announcement, the ECB hosted a press conference, which increased the range of volatility.
Economic Calendar Analysis
On Friday, the US Consumer Price Index release at 12:30 GMT is set to impact all financial markets through the value of the USD.
EUR/USD hourly chart's review
From a technical analysis perspective, the events broke the resistance zone at 1.0747/1.0765. It indicates that the pair might move higher.If the rate moves higher, resistance might be encountered in the weekly R1 simple pivot point at 1.0793, May 30 high at 1.0787, prior to reaching the 1.0800 mark. On the other hand, a decline of the Euro against the US Dollar might look for support in the 1.0625/1.0640 range.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has reached the upper trend line of the channel down pattern, which has guided the rate since the start of 2022. It appeared initially that the resistance of the line had held and started a decline.Daily chart
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Traders are slightly long
On Wednesday, on the Swiss Foreign Exchange, trader open positions were bullish, as 55% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to sell the Euro against the USD.
On Thursday, the sentiment was 56% long and pending orders were 51% to sell.