Prior to the event, the EUR/USD retraced back up and broke two resistance levels. It could be assumed that the short position holders were taking profits prior to the event.
Economic Calendar Analysis
This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
EUR/USD hourly chart
In the case of a surge of the EUR/USD, note the resistance of the 1.1100 mark and the 100-hour simple moving average. Higher above, the 1.1150 level, the weekly simple pivot point at 1.1169 and the 200-hour SMA might act as resistance.On the other hand, a decline of the Euro against the US Dollar might find support in the 50-hour SMA, the weekly S1 simple pivot point at 1.1063 and the 1.1050 mark, before approaching the weekly S2 and the 1.1000 mark.
However, fundamentals and especially Fed rate hike are above all technicals.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has been declining since the attempt to pass above 1.1250. Most recently, the rate mostly ignored the resistance zones that had kept the pair down during the past two years.Daily chart
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Traders are shorting
Before the FOMC announcement, the Swiss Foreign Exchange traders were 65% in short positions.
Meanwhile, trader set up pending orders in a 100-point range around the current rate were 53% to sell the Euro against the US Dollar.