By the middle of Wednesday's trading, the rate had recovered and was finding resistance in the combination of the 50 and 100-hour simple moving averages and the 1.0500 mark.
Economic Calendar Analysis
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
EUR/USD hourly chart
A move above 1.0500 might encounter resistance in the 1.0550 level. However, the EUR/USD previously ignored this level. It is more likely that the pair approaches the 1.0600 mark.Meanwhile, a potential decline of the pair is once again set to look for support in the weekly simple pivot point at 1.0456, the 1.0450 level and the 200-hour simple moving average near 1.0445. Further below, note that the 1.0400 mark or the weekly S1 simple pivot point at 1.0367 could act as support.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the recent surge has moved the rate once again above the 1.0350/1.0400 zone. The zone impacted the rate throughout 2021 and 2022 as support and resistance.Meanwhile, it appears that despite being pierced, the 200-day simple moving average has been acting as support.
In regards to the future, note that the 1.0600 and 1.0800 levels acted as resistance in May and June. Most recently, it was spotted that the 1.0600 had acted as resistance on December 5.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, on the Swiss Foreign Exchange, trader open positions were short, as 58% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 51% to sell the Euro against the USD.
On Wednesday, the sentiment was still 58% short and orders were 54% to sell.