Traders, who were short prior to the US Federal Reserve rate announcement, most likely profited, as yesterday's 18:00 GMT candle has a big tail down to the 1.1080 level.
Afterwards the rate surged, as the US Dollar began to lose value due to the rate cut and speculators all around the world taking profit from their short positions. On Thursday morning, it appeared that the EUR/USD rate would soon reach the 1.1200 level.
Economic Calendar Analysis
EUR/USD hourly chart's review
On Thursday morning, the EUR/USD traded near the 1.1170 level. Meanwhile, it had no technical resistance as high as the 1.1200 level, where a 38.20% Fibonacci retracement level was located at. In addition, the 1.1200 is a psychological level that impacts the rate on its own.Hourly Chart
Since the middle of Wednesday's trading, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, pending trade orders were set to sell, as 67% of orders in the 100-pip range were to sell and 33% were to buy. Previously, the orders were 59% bullish.
Most likely, traders have reopened their short positions, as the currency rate surged. Namely, these short positions are highly likely set up to profit from a possible down retracement of the EUR/USD.