The event should easily break the moving averages, weekly pivot point and everything that is located close by to the rate. However, after the pair exhausts its initial move, the pair could be slowed down or stopped by a farther away technical level.
Economic Calendar Analysis
On Wednesday, the top event of them all will take place. The US Federal Reserve will announce its Federal Funds Rate. The central bank is expected to keep the rate at 5.50%. Moreover, note the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. The events are scheduled for 19:00 and 19:30 GMT.
After the US reveal their policy, the rest of the world decides how to react on Thursday. Namely, the Swiss National Bank at 08:30 GMT, the Bank of England at 12:00 GMT and the European Central Bank at 13:15 GMT are all set to make rate announcements. The CHF, GBP and EUR are set to act to the rate announcements.
However, in most cases these banks do not surprise the financial markets. Moreover, they are all expected to follow the example of the Fed and keep their rates unchanged.
Meanwhile, note that the ECB President and Vice President are set to host a press conference at 13:45 GMT. Sometimes Christine Lagarde makes comments that impact the Euro and European stock indices.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
EUR/USD hourly chart analysis
Above the 1.0800 mark note the weekly R1 simple pivot point at 1.0862 that could turn into resistance, before the pair reaches the 1.0900 mark and the weekly R2 at 1.0964.However, a strengthening of the US Dollar against the Euro is set to result in a EUR/USD drop. The move could find support in the 1.0700 mark and the weekly S1 simple pivot point at 1.0690. Further below, note the weekly S2 at 1.0621.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate waits between the support of the 50 and 100-day simple moving averages and resistance of the 200-day SMA.A break out to the upside could aim at the 1.1000 mark, but a decline could reach as low as 1.0450, unless a prior support and resistance zone comes back into play.
Daily chart
Read More: Technical Analysis
Traders are neutral
From Monday up to just before the Fed release, the Swiss Foreign Exchange traders were 52% in long positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 51%-59% to sell the Euro against the US Dollar.