The pair reacted to the news with a surge. The surge is attributed to the fact that the European Central Bank is set to continue with 0.50% rate hikes.
Economic Calendar Analysis
Note the European Manufacturing and Services sector Purchasing Managers Indices on Friday. The European country data will be published from 08:15 GMT up to 09:00 GMT.
EUR/USD hourly chart
On Thursday morning, the EUR/USD reached above the 1.0900 mark. A continuation of the currency pair's surge might encounter resistance in the 1.0950 and 1.1000 levels, before reaching the weekly R3 simple pivot point at 1.1022.Meanwhile, a potential decline of the rate is expected to look for support in the 1.0850 level and the 50-hour simple moving average. Below these levels, the rate could find support at 1.0800 or the 1.0735/1.0760 zone.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has broken the resistance zone near 1.0725. Moreover, the channel down pattern has crumbled due to the change in monetary policy of the two currencies.However, note that the April high level at 1.0937 was observed to be acting as resistance. Higher above, the 2023 high at 1.1030 could stop the surge.
Daily chart
Read More: Technical Analysis
Short sentiment grows
Prior to the US rate hike, trader open positions were bearish, as 55% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to buy the Euro against the USD.
After the rate hike, 60% of traders were short and pending orders were 56% to buy.