In regards to the near term future, the rate was likely set to trade sideways until it is approached by additional technical support or fundamental event pushes the EUR/USD up.
Economic Calendar Analysis
On Thursday, at 13:30 GMT, the US Jobless Claims could cause a minor move on all USD pairs and assets that are traded in US Dollars.
EUR/USD hourly chart's review
On the hourly candle chart the rate was testing the resistance of the December high levels. The high levels are marked as a zone from 1.2250 to 1.2275. In addition, the rate faces the resistance of the weekly R1 simple pivot point at 1.2262.Meanwhile, take into account that on Tuesday a channel up pattern was added to the chart. It can be drawn by connecting the December 23 and 25 low levels and setting a parallel line at the Monday's high. In general, it captures the surge that has been occurring from 1.2150.
In the case of the rate bouncing off the resistance zone, it would look for support in the 55, 100 and 200-hour simple moving averages, which on Tuesday were located above the 1.2200 level.
On the other hand, the pair could trade sideways below the zone until the SMAs catch up to the rate and push it through the resistance levels. If the rate passes the resistance, it should first aim at the 1.2300 mark and afterwards, the weekly R2 simple pivot point at 1.2323.
Hourly Chart
On the daily candle chart, the rate remains in the channel up pattern. Most recently it has made a retracement back down to the support of the zone that kept the rate down in the first half of December and bounced off it to resume its surge.
Daily chart
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Traders remain short
On Tuesday, on the Swiss Foreign Exchange trader open positions were bearish, as 61% of open position volume was in short positions.
Note that since the previous Wednesday the sentiment had been near the 60% short level.
Meanwhile, on Tuesday, trader set up pending orders in the 100-pip range around the pair were 62% to sell the pair.