Near term forecasts were based upon whether or not the 100-hour simple moving average provides resistance.
Economic Calendar Analysis
Notable data releases will start on Wednesday. On that day, the US Consumer Price Index data could cause a minor move on USD assets at 13:30 GMT. The EUR/USD has moved from 6.1 to 23.8 pips on the announcement.
On Thursday, the European Central Bank will make a rate statement at 12:45 GMT. However, the rate has not changed for years and years. Instead, read the Monetary Policy Statement that is published at the same time. It reveals, how much money the ECB is going to flood the market with. Depending on that the EUR supply and strength change. This event has caused moves from 3.8 to 30.6 pips since July 2020.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
Despite passing the resistance of the 1.1900 mark, the EUR/USD did not book large gains. The 1.1915 level provided resistance and stopped the rate's surge. It was spotted on Wednesday that this level provided both support and resistance to the rate since the end of the last week. In the meantime, the rate was being approached by the 100-hour simple moving average.In regards to the near term future, the rate could be pushed down by the 100-hour simple moving average, which on Wednesday morning was approaching the resistance of the 1.1915 level. A potential decline could once again test the support of the weekly S1 simple pivot point at 1.1838.
On the other hand, if the 1.1915 mark and the 100-hour SMA fail to provide resistance, the pair could aim first at the 1.1950 level and afterwards the weekly simple pivot point at 1.1976.
Hourly Chart
On the daily candle chart, the pair has reached the support of the 200-day simple moving average, which might have been one of the causes of the recent EUR/USD recovery. If the SMA pushes the rate up, it could reach for the 23.60% Fibonacci retracement level at the 1.2000 mark.
On the other hand, if the 200-day SMA fails to push the rate up, it could aim at the 38.20% Fibonacci retracement level just below the 1.1700 level.
Daily chart
Read More: Technical Analysis
Bullish sentiment grows
On Tuesday, on the Swiss Foreign Exchange trader open positions were bullish, as 57% of open position volume was in long positions.
On Wednesday 59% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 55% to sell the pair.
Previously, the orders were 62% to buy.