During the drop, the rate passed the support of the hourly simple moving averages and the weekly R1 simple pivot point.
Economic Calendar Analysis
On Wednesday, the FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 5.4 to 9.8 pips. Note that there was an anomaly of 23.2 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The releases have caused moves, respectively, from 11.1 to 23.8 and 10.4 to 16.9 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 15.7 to 28.9 pips since August.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
As the rate passed the 200-hour SMA on Thursday morning, the rate was set to reach for the support of the weekly simple pivot point at 1.2236.If the pivot point provides support, the rate could retrace back up to the resistance zone of the 1.2340 and 1.2350 levels. However, on its way up it would have to pass the resistance of the 55 and 100-hour simple moving averages and the weekly R1 simple pivot point.
On the other hand, if the weekly PP fails to hold, the rate would reach for the 1.2200 mark and afterwards the support of the weekly S1 pivot point at 1.2163.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern, which has been guiding the rate since the start of November.
On Thursday, the rate was approaching the lower trend line of the pattern, which was expected to provide support just below the 1.2250 exchange rate level.
Daily chart
Read More: Technical Analysis
Traders remain long
On Thursday, on the Swiss Foreign Exchange trader open positions were bearish, as 66% of open position volume was in short positions.
During Wednesday's trading hours, the sentiment was 67% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 73% to sell the pair.