Namely, the bank initially revealed that it would tighten the supply of the Euro via a 0.5% interest rate and then everyone read into the released documents about the new program and found out that they will simultaneously create money via bond buying.
In general, the situation has not changed, the ECB is not properly tightening monetary policy, increasing the value of the Euro and decreasing inflation in Europe. Due to that reason, the EUR/USD still traded near 1.0200 on Friday morning.
Economic Calendar Analysis
On Friday, at 13:45 GMT, the US PMIs might impact the rate through the US Dollar's value.
EUR/USD hourly chart's review
In regards to the near term future, a potential surge of the Euro against the US Dollar would have to reach above the 1.0.270/1.0280 zone, prior to testing the 1.0300 mark.On the other hand, a decline is expected to find support in the July 20 and 21 low levels at 1.0153. Further below, note the 200-hour simple moving average and the 1.0100 level.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the pair has found support in the lower trend line of the large scale channel down pattern, which has guided the rate down throughout 2022. In theory, the currency pair should recover until it encounters resistance. Resistance might be found in the previous low level zone at 1.0350/1.0400.Daily chart
Read More: Technical Analysis
Traders remain long
On Friday, 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 52% to buy the Euro against the USD.
On Thursday, the open positions were 64% long and pending orders were 58% to buy.