In the meantime, it was spotted in the sentiment numbers that a portion of traders had taken profits from the recent surge.
Economic Calendar Analysis
On Wednesday, at 19:00 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes. The EUR/USD had the initial reaction of 3.2 to 23.2 base points.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
If the resistance of the zone fails to keep the EUR/USD down, the currency exchange rate could reach for the 1.1900 mark and the weekly R3 simple pivot point at 1.1899. In the case of these levels failing to hold, the rate would aim at the March 22 high level zone near 1.1940.On the other hand, if the resistance of the 1.1880 zone holds, the EUR/USD could return to the weekly R2 simple pivot point at 1.1848, the 1.1850 mark and the support zone that lasts from 1.1845 to 1.1835.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the EUR/USD is recovering despite previously piercing a long term descending trend line's support. In the near term future, the rate could find resistance in the 200-day simple moving average, which was near the 1.1900 level.If the 200-day SMA fails, the rate could reach for the 1.2000 mark. The 1.2000 level's resistance was being strengthened by the 55-day SMA and a 23.60% Fibonacci retracement level.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Tuesday, on the Swiss Foreign Exchange trader open positions were bullish, as 58% of open position volume was in long positions.
On Wednesday, the sentiment had decreased to 54% long, as some traders had taken profits from the recent surge.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 72% to sell the pair.
63% of orders were to sell on Tuesday.
The sell orders are most likely the take profits and stop losses of the long positions. In addition, there are orders to open short positions in the case of a retracement back down.