Economic Calendar Analysis
On Friday, the EUR/USD is set to react to the publication of the French and German Flash Manufacturing and Services sector Purchasing Managers Indices at 07:15 and 07:30 GMT.
Later on, at 13:45 GMT, the US PMIs are scheduled to be release. However, in most cases the market ignores this event.
EUR/USD hourly chart
A move below the 0.9800 level could look for support in the 0.9750 and 0.9700 levels, prior tor reaching the 0.9650 and the weekly S3 simple pivot point at 0.9654.However, a recovery of the pair would most likely encounter resistance in the previous September low level zone at 0.9865/0.9875. Higher above, note the 0.9900 level, the weekly S1 simple pivot point and the 50-hour simple moving average.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD has reached new historical low levels, as the previous September low levels were passed by the rate during the initial hike by the Federal Reserve. It signals that new low levels are highly likely going to be reached.Note that the pair has been declining in a channel down pattern throughout 2022. However, the lower trend line of the pattern is located far below the rate, at 0.9600. Meanwhile, the pattern's resistance is at 1.0090. Moreover, the resistance line is strengthened by the 50-day simple moving average.
Daily chart
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Traders increase long positions
Prior to the Fed Statement, on the Swiss Foreign Exchange, trader open positions were bullish, as 64% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 61% to sell the Euro against the USD.
On Thursday, the open positions were 70% long and pending orders were 56% to sell. The traders had incurred or were still sitting on losses.