In the aftermath of the event, the EUR/USD pierced the resistance of the 1.1100 mark and was signalling a continuation of the ongoing upwards move.
Economic Calendar Analysis
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
The surge of the Euro against the US Dollar is expected to be slowed down by the combination of the 1.1150 level and the 200-hour simple moving average. Higher above, take into account the weekly simple pivot point at 1.1169, the 1.1200 mark and the weekly R1 simple pivot point at 1.1231.On the other hand, a potential decline of the Euro against the US Dollar is expected to look for support in various technical levels. The 100-hour SMA is acting as weak support at 1.1086. The combination of the 50-hour SMA and the weekly S1 simple pivot point are impacting the rate near 1.1060. Further below, note this week's low level zone at 1.1020/1.1040.
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 chartRead More: Technical Analysis
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.
After Fed rate hike, 65% positions were still short and orders were 59% to sell.