In general, the statement revealed that US interest rate hikes are not to be expected. In addition, the Fed is set to continue its monetary stimulus until it sees actual economic recovery instead of just forecasts of recovery. These announcements caused a broad drop of the USD.
Economic Calendar Analysis
There are no more notable events scheduled for this week. On Friday, expect an update to the calendar section with the next week's event reviews.
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
On Wednesday, at 18:00 GMT the EUR/USD started a surge, which was caused by the US Federal Reserve, which revealed that it would not hike interest rates and that monetary stimulus would remain intact. This beat down the USD and caused a surge to the 1.1990 mark. However, by the middle of Thursday, the rate had returned to the support of the 1.1910/1.1915 zone.If the support zone holds, the rate would face the resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 1.1920/1.1930 zone. In the case of these technical levels not providing resistance, the pair might reach the 1.1950 level.
On the other hand, if the support zone fails to hold, the pair most likely would reach for the support of the zone above the 1.1880 level.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair can be observed to be trading between the 1.2000 and 1.1900 levels. In the meantime, it has close by the support of the 200-day SMA and the resistance of the 100-day simple moving average.Daily chart
Read More: Technical Analysis
Sentiment remains long
Since Wednesday, on the Swiss Foreign Exchange trader open positions were bullish, as 57% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 66% to buy the pair. The orders also had not changed since Wednesday.