Since Tuesday's GMT afternoon hours, the pair was trading sideways between the two mentioned zones. In the meantime, the rate was being approached by the resistance of the 55 and 200-hour simple moving averages.
Economic Calendar Analysis
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The EUR/USD has moved from 10.8 to 36.2 base points since November 5, 2020 on the announcement.
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
In the case of the 55 and 200-hour simple moving averages providing enough resistance, the pair could decline to the 1.1882/1.1888 support zone and make an attempt to pass it. If the zone would be passed, the EUR/USD could reach for the weekly S1 simple pivot point at 1.1865.On the other hand, a failure of the SMAs would most likely result in the pair continuing to trade sideways between the two zones. Meanwhile, note that a break out upwards was highly unlikely due to the resistance of the 55 and 200-hour SMAs.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair appears to be retracing down to the support of the 200-day simple moving average, which was approaching the 1.1850 mark.Previously, the rate began the ongoing four day decline by bouncing off the 1.2000 level even before properly reaching it.
Daily chart
Read More: Technical Analysis
Sentiment remains long
On Tuesday, on the Swiss Foreign Exchange trader open positions were bullish, as 56% of open position volume was in long positions.
On Wednesday, 57% of 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.