Markit released the German Flash Manufacturing PMI survey results, which came out better-than-expected of 58.6 compared with the forecast of 56.4.
According to the official release: "December's ‘flash' PMI survey from IHS Markit pointed to ongoing resilience in the German economy, with strength in manufacturing continuing to offset service sector weakness. The survey meanwhile pointed to a minor setback in private sector employment, though firms remained optimistic about the year-ahead outlook."
Economic Calendar Analysis
On Wednesday, US PMIs and other data from the country will be published. Namely, US Retail Sales at 13:30 GMT and the US Services and Manufacturing PMIs at 14:45 GMT. The Retail Sales have caused moves from 6.0 to 19.7 pips, and the PMIs have made 7.8 to 26.4 pips.
Moreover, at 19:00 GMT the top event of the macro events is occurring. The US Federal Reserve is releasing their FOMC Economic Projections and Statement together with the Federal Funds Rate. Since April the Fed Funds Rate has caused moves from 10.8 to 68.1 pips. However, when the projections are published, the moves are higher, as the EUR/USD moved 36.2 and 68.1 pips in June and September.
On Thursday, the weekly US Unemployment Claims could cause a bounce of around 10 pips on the EUR/USD charts.
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
First of all, the surge that was caused by the German PMIs, broke the resistance zone that was located from 1.2160 to 1.2175. In the meantime, note that the surge was supported by the 55-hour simple moving average.The rate started a consolidation in the aftermath of the surge, as it retraced back down. The retracement could continue until the rate finds support. The most close by technical support was the weekly R1 simple pivot point at 1.2170 and the 55-hour simple moving average, which was located at 1.2160.
On the other hand, at the start of US trading hours, the rate appeared to have found support in the round exchange rate level of 1.2180. If this level manages to provide enough support, the rate could make an attempt to reach the weekly R2 simple pivot point at 1.2222.
Hourly Chart
On the daily candle chart, the currency exchange rate continues to surge in the borders of a channel up pattern. On Wednesday, the resistance of the ascending pattern was located at the 1.2300 mark. Namely, the pair could reach for this level.
In the meantime, note that the 2018 high level of 1.2528 is marked on the chart, as a 0.00% Fibo. It is connected with the 2017 low level.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, on the Swiss Foreign Exchange trader open positions were bearish, as 61% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 54% to sell the pair.