Future near term forecasts were based upon what would happen at the pivot point.
Economic Calendar Analysis
There are couple events that could impact the EUR/USD pair.
On Thursday, at 11:45 GMT, the European Central Bank would publish its Main Refinancing Rate, which most likely would remain at 0.00%. However, despite the rate remaining unchanged, since March, the rate has moved from 16.9 to 82.6 pips on the announcement.
On the same day, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to find out more about the data releases.
EUR/USD hourly chart's review
The EUR/USD passed the support of the medium scale channel up pattern near the 1.1800 level. On Wednesday morning, the rate was located at the monthly S1 simple pivot point at 1.1767.If the pivot point continues to provide support, the rate could retrace back up to the 55 and 100-hour simple moving averages at 1.1805 and 1.1819.
In the case of the pivot point failing to keep the rate up, the rate would aim at the weekly S1 pivot point at 1.1743.
Hourly Chart
On the daily candle chart, if the rate has passed the support of the large scale channel up pattern, which guided the rate since May.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Wednesday, on the Swiss Foreign Exchange 54% of all EUR/USD open position volume was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were bullish, as 67% of orders were to buy.
Previously, the orders were 64% to buy.