On the EUR/USD chart it resulted in high volatility between 1.0620 and 1.0695. By mid-Thursday the rate had declined and almost reached the support of the weekly R1 simple pivot point at 1.0603 and the 1.0600 mark.
Economic Calendar Analysis
On Thursday, at 13:15 GMT, the European Central Bank will publish its Monetary Policy Statement and with it the Main Refinancing rate. It is expected that the ECB could follow the example of the Federal Reserve. Note that most volatility occurs during the follow up press conference. The press conference is scheduled for 13:45 GMT.
Later on, at 13:30 GMT, the US Retails Sales data and Empire State Manufacturing Index might cause an adjustment in the value of the US Dollar.
The week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data. Note that most impact occurs due to the French and German data at 08:15 and 08:30 GMT. The European data is followed by US data at 14:45 GMT.
EUR/USD hourly chart
On Thursday, the European Central Bank is set to announce its main refinancing rate and host a press conference. Volatility is going to remain high during the 13:00-14:00 GMT period, as the rate will be released at 13:15 GMT and a press conference will be held at 13:45 GMT.Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the 1.0600 had acted as resistance since December 5. During the CPI release on 14.12.2022, the level was broken. Most recently, the level was observed to be acting as support.Next target for the pair could be the 1.0790/1.0810 zone.
Daily chart
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Traders remain short
Before the US CPI and the Fed hike, on the Swiss Foreign Exchange, trader open positions were short, as 59% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the Euro against the USD.
By mid-Thursday, the sentiment was still 59% short. Pending orders were 50% to buy and 50% to sell.