Economic Calendar Analysis
This week, the top event of them all is scheduled for Wednesday. At 18:00 GMT, the US Federal Reserve is set to announce its Federal Funds Rate and release the FOMC Statement and Economic Projections. In general, the markets expect the US Fed to hike 0.75%. However, some market participants expect the US monetary policymakers to strengthen the USD even more, as they await a 1.00% hike.
Afterwards, at 18:30 GMT, the Chairman of the Federal Reserve Jerome Powell will host a press conference. Quite often, the press conference reverses the initial market moves that have been caused by the monetary decision. Namely, the Chairman states something, which the market interprets as either dovish or hawkish.
On Friday, the EUR/USD is set to react to the publication of the French and German Flash Manufacturing and Services sector Purchasing Managers Indices at 07:15 and 07:30 GMT.
Later on, at 13:45 GMT, the US PMIs are scheduled to be release. However, in most cases the market ignores this event.
EUR/USD hourly chart
A move of the EUR/USD above the 1.0050 level could result in the pair testing the 1.0100 mark and the zone, which surrounds it. Higher above, take into account the 1.0150 level, the weekly R1 at 1.0160 and the zone near 1.0200.On the other hand, a decline of the Euro against the US Dollar could find some support in the 1.0000 mark, which is strengthened by the 50 and 100-hour simple moving averages. Further below, the last week's support zone near 0.9950 is set to once again impact the pair.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD pierced the resistance of the 50-day simple moving average and the upper trend line of the 2022 channel down pattern. However, the 1.0200 mark was strong enough to cause a decline.During this week the pair remained in the borders of the pattern. In regards to the near term future, watch the summer and September low levels, which could act as support.
Daily chart
Read More: Technical Analysis
Traders are long with sell orders
This week, on the Swiss Foreign Exchange, trader open positions were bullish, as 63% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 58% to sell the Euro against the USD.
On Tuesday, the open positions were 61% long and pending orders were 55% to sell.