As a result on the EUR/USD charts a surge up to the 0.9750 level occurred. The 0.9750 acted as resistance and caused a decline. By the start of Thursday's European trading hours, the rate had reached the combined support of the 0.9650 level and the 50 and 100-hour simple moving averages.
Economic Calendar Analysis
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
EUR/USD hourly chart
An extension of the decline of the Euro against the US Dollar would most likely look for support in the 0.9600 level, before approaching the weekly S1 simple pivot point at 0.9554 and the 0.9550 level. Further below, note the 0.9500 and 0.9450 levels.On the other hand, another spike upwards by the rate would face resistance in the 0.9700 and 0.9750 levels, prior to reaching the combination of the 0.9800 mark, the weekly simple pivot point at 0.9802 and the 200-hour simple moving average.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has approached the lower trend line of the 2022 channel down pattern below the 0.9600 level.In theory, a recovery could occur. However, other major pairs have broken their 2022 patterns, as recent fundamentals have strengthened the USD more than the markets expected.
Daily chart
Read More: Technical Analysis
Traders are long
On Thursday, on the Swiss Foreign Exchange, trader open positions were bullish, as 71% 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 Wednesday, traders were 72% long and pending orders were 67% to sell.