By the middle of the day's European trading hours, the currency exchange rate had bounced off the 1.2110 level and retraced up to the 1.2140 mark.
Economic Calendar Analysis
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement and Federal Funds Rate at 19:00 GMT. The EUR/USD rate has moved from 10.8 to 68.1 pips on the announcements that have occurred since June.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time. The GDP has caused minor moves from 7.9 to 13.6 pips since October 2019.
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
It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2139/1.2157 range.Meanwhile, note that the rate could gain support from the weekly S1 at 1.2089. If the predetermined support holds, the pair could bounce off and re-test the 1.2180/1.2190 resistance area.
Hourly Chart
On the daily candle chart, the pair is heading upwards, supported by the 55-day moving average.
A likely target for a surge would be the January high level of 1.2350.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, on the Swiss Foreign Exchange trader open positions were bearish, as 56% of open position volume was in short positions.
On Monday, the sentiment was 57% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 59% to buy the pair.