The Federal Reserve Monetary Policy announcements on Wednesday have caused a surge of the EUR/USD due to the weakness of the USD.
By the middle of Thursday's trading session the rate had reached the 1.1300 level, where it encountered a weekly pivot point.
A report on the FOMC announcement will be available in the Fundamental Analysis section during Thursday's London trading session.
During Tuesday's morning, at 08:00 GMT, the European Common Currency depreciated 50 pips or 0.44% against the US Dollar. Note, that the Euro also depreciated against other major currencies.
The reason for the drop is the speech by the ECB President Mario Draghi. He attempted to reassure the market that the Bank is able to act amid increasing concerns on the real effect of the EU monetary policy in case a new recession occurs.
The US President Donald Trump criticized Mario Draghi's plans to cut interest rates, as it would weaken the euro and put the US at a competitive disadvantage.
In addition, following the German ZEW Economic Sentiment data release on Tuesday at 9:00 GMT. The EUR/USD exchange currency rate lost 8 pips or 0.08%. The Euro continued trading at the 1.1185 level against the Greenback.
ZEW released the German ZEW Economic Sentiment data, which came out worse-than-expected of negative 21.5 compared with forecast negative 5.7.
European PMIs will impact EUR/USD on Friday
On Friday morning, the European PMIs will get released. Most important of the PMIs will be the German data at 07:30 GMT.
EUR/USD hourly chart's review
On Thursday, the EUR/USD encountered the resistance of the 1.1300 level, which was strengthened by the technical resistance of the first resistance level of the simple weekly pivot points.In general, if the 1.1300 fails to hold or push the rate down, the rate will surge up to the next technical resistance level. Namely, the pair will reach for the monthly pivot point at 1.1338.
On the other hand, the rate has experienced a sharp fundamental surge, after which a decline or trading sideways should occur due to the pair being overbought.
Hourly Chart
On the daily candle chart, the rate has bounced off the support of the monthly PP at 1.1180 and surged through the resistance of the 55 and 100-day simple moving averages.
In general, the most notable fact of the daily candle chart is the approach of the 200-day simple moving average. On Thursday, the SMA was about to strengthen the monthly second resistance pivot point at 1.1338.
Daily chart
Since Wednesday, most traders were short, as 71% of open position volume on the Swiss Foreign Exchange were in short positions.
It means that most had held their short positions despite the recent surge.
Meanwhile, trader set up pending orders in 100-pip range around the pair were balanced. 50% of orders were set to buy and 50% were set to sell.