On Wednesday, the EUR/USD currency exchange rate retreated after touching the 1.1200 level on Tuesday.
In general, the rate's retreat was expected to test support levels in the range from 1.1157 to 1.1120.
FOMC Rate Cut
The Euro appreciated against the US Dollar, following the FOMC Statement release on Tuesday at 15:00 GMT. The EUR/USD exchange currency rate gained 61 pips or 0.55% after the release. The Euro continued trading at the 1.1200 level against the Greenback after the release.
The Federal Open Market Committee cut the Federal Funds Rate to a target range of 1.00% to 1.25% at an unscheduled emergency meeting.
The US policymakers announced the cut of the interest rate by a half of a percentage point in response to the increasing economic threat from the coronavirus outbreak.
Economic Calendar Analysis
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT. This event has mostly caused moves below ten pips. The exception was the 15.4 pip move in December.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published. Last year, this event caused moves from 26.0 to 36.5 pips. This year, there were two moves of 7.9 and 9.1 pips.
On Friday, the US employment data will be released at 13:30 GMT. The event has caused moves from 15.5 to 41.4 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair tried to surpass the resistance formed by the Fibo 38.20% and the weekly R2 at 1.1200. During today's morning, the pair was trading near the given resistance.It is likely that the exchange rate could gain support from the 55-hour SMA near 1.1140 and trade upwards in the short term. A possible upside target is the monthly R2 located at 1.1285.
However, if the given resistance holds, it is likely that the Euro could consolidate against the US Dollar in the short run. Also, it is unlikely that bears could prevail, and the pair could decline below the 100-hour SMA at 1.1070.
Hourly Chart
On the daily candle chart, the rate has reached above the resistance of the daily simple moving averages. Moreover, the SMAs began to support the rate on Monday.
Daily chart
On Monday, the traders of the Swiss Foreign Exchange were short on EUR/USD, as 65% of all open position volume was in short positions.
By the middle of Tuesday's trading, the sentiment was 68% short, and on Wednesday, 72% of volume was short.
Meanwhile, set up pending orders were set to sell, as 57% of orders in the 100-pip range were to sell and 43% were to buy.
Previously, 63% of orders were to sell and 37% were to buy.