Afterwards, the Dollar recovered as soon as the press conference of the Chairman of the Federal Reserve started. In general, the Chairman of the Federal Reserve has revealed that the US monetary policymakers are aiming at sustaining low unemployment in the USA, as inflation appears to be no longer an issue for the Fed.
The EUR/USD pair reflected these events in the form of bouncing around between 1.1200 and 1.1080. By late Thursday, the high volatility appeared to be over, as the rate found support in the 50 and 100-hour simple moving averages and the weekly R1 simple pivot point near 1.1120. Meanwhile, resistance was provided by the 1.1160/1.1175 zone.
Economic Calendar Analysis
On Friday, watch the Japanese Yen during the Asian session. The Bank of Japan is expected to announce its monetary policy. Despite the BoJ Policy Rate being forecast to remain unchanged, markets might move due to comments from the central bankers.
The BoJ does not give a predetermined time for its announcements, as it wants to avoid unnecessary speculation from market participants.
EUR/USD hourly chart analysis
In regard to the future, a move above the 1.1160/1.1175 zone might be stopped by the 1.1190/1.1200 range and afterwards the weekly R2 simple pivot point at 1.1216.On the other hand, a decline would have to first pass the technical levels near 1.1120 and the 1.1100 mark. Further below, note the ascending 200-hour simple moving average. If the 200-hour SMA fails to provide support, the weekly simple pivot point and the 1.1040/1.1060 range might stop a decline.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has returned to the 1.1130/1.1200 resistance zone that has kept the pair down in August and September.Meanwhile, take into account that the 1.1005 level acted as resistance in early August and then as support in mid-September. It appears that it might be the upper border of a support and resistance zone.
Daily chart
Read More: Technical Analysis
Traders remain short
This week, on Monday, traders were bearish, as 71% of volume was in short positions.
Meanwhile, pending orders in the 100-base point range around the pair were 50% to buy and sell.
On Thursday, traders were 73% short and orders were 56% to sell.