The news caused a drop of the Euro. The EUR/USD plummeted more than 50 base points in less than ten minutes. On our hourly candle chart the move occurred as a passing of the support of the 200-hour simple moving average, prior to finding support in the 50-hour simple moving average.
Economic Calendar Analysis
EUR/USD hourly chart's review
In the case that the rate declines below the 50-hour simple moving average, the pair might look for support in the Wednesday's low level at 1.0810. Further below, the 1.0800 mark and the weekly S1 simple pivot point could stop a decline.On the other hand, the pair might recover and face resistance at 1.0900, which is strengthened by the 200-hour simple moving average. Higher above, note the weekly simple pivot point at 1.0922 and the high level zone at 1.0927/1.0937.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has reached the March low level at 1.0810. A passing of this level might result in the rate reaching the lower trend line of the large scale channel down pattern near 1.0750.Daily chart
Read More: Technical Analysis
Long sentiment grows
On Wednesday, on the Swiss Foreign Exchange trader open positions were long, as 69% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 53% to sell the Euro against the USD.
On Thursday, the sentiment was 73% long and pending orders were 56% to buy.