We congratulate the traders, which had open the 70% of total short position volume on the Swiss Foreign Exchange on Wednesday.
The FOMC announcement late on Wednesday caused a drop below the 1.1200 level, from which these traders should have profited.
The European Common Currency appreciated against the US Dollar, following the US ISM Manufacturing PMI data release on Wednesday at 14:00 GMT. The EUR/USD exchange currency rate gained 11 pips or 0.09% right after the release. The Euro continued trading at the 1.1240 level against the US Dollar.
Institute for Supply Management released the US ISM Manufacturing PMI data that came out worse-than-expected of 52.8 compared with forecast 55.0.
According to the chair of the Institute for Supply Management, Timothy R. Fiore: "This indicates growth in manufacturing for the 32nd consecutive month. The PMI reversed a March expansion improvement, thanks to decreases in new orders, production expansion and employment. The PMI achieved its lowest level of expansion since October 2016, when the index registered 51.7 percent."
Next up will be employment data on Friday
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
EUR/USD hourly chart's review
On Thursday, the EUR/USD on the hourly candle chart was located between the support of the 100 and 200-hour simple moving averages near 1.1195 and the resistance of the 55-hour SMA and a monthly pivot point at 1.1217.If the pair breaks the resistance levels, it will surge and make another attempt to pass the weekly pivot point at 1.1239. If this PP is broken, the 1.1300 level would be targeted.
On the other hand, the rate might drop down through the two simple moving averages, which are keeping the rate up. In that case, the EUR/USD would find support in the 1.1180 level where a Fibonacci retracement level is at.
Hourly Chart
On the daily candle chart, the massive scale patterns have been adjusted. In general, the rate is set to be squeezed in between the resistance of a dominant pattern and the support of a junior.
This should result in a break out by the start of summer.
Meanwhile, note that the 55 and 100-day SMAs were providing resistance near 1.1280 and 1.1336.
Daily chart
On the Swiss Foreign Exchange, 68% of the total open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were slightly bearish. Namely, 54% of all orders were set to sell.