The EUR/USD reacted to the news with an immediate drop of almost 50 base points or 0.45%. Meanwhile, on a larger scale, the rate remained above the 1.0500 mark and the recent low level zone below it.
Economic Calendar Analysis
On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
EUR/USD hourly chart's review
In regards to the near term future, previous forecasts remain intact, as despite the increased volatility during the CPI, by 13:30 GMT, the currency pair had not revealed its direction.If the pair declines, the 1.0500 is expected to act as support, before the last week's low level zone at 1.0472/1.0492 is reached. In addition, take into account the weekly simple pivot point at 1.0471. Further below, the weekly S2 simple pivot point is located at 1.0397 and strengthens the 1.0400 level.
On the other hand, a recovery of the Euro against the USD would have to pass the 1.0580 level and the 1.0600 mark, before approaching the post-Federal Reserve rate hike high level zone at 1.0626/1.0642 and the weekly R1 simple pivot point. Meanwhile, note that the pair was ignoring the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.0535/1.0557
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, a new channel down pattern has been marked. The channel captures the rate's 2022 decline.Most recently, the pair appears to have encountered its lower trend line, which means that the pair moved too much from the broad decline's centre and the recent sell off resulted in the EUR/USD being oversold. Due to that reason, the pair has been consolidating by trading almost sideways between 1.0470/1.0490 and 1.0600.
Daily chart
Read More: Technical Analysis
Traders set up sell orders
On Wednesday, on the Swiss Foreign Exchange trader open positions were bullish, as 70% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 62% to sell the Euro against the USD.
On Tuesday, the situation changed, as 72% of volume was long and pending orders were 57% to sell.