The news strengthened the US Dollar and caused a decline of the EUR/USD. However, the 1.0950/1.0965 range held a support from mid-Wednesday up to 08:00 GMT on Thursday. The support failed and was confirmed as resistance. Afterwards, the rate declined to the 1.0920 level.
Meanwhile, note that before the event Dukascopy traders were positioned 67% short and most likely are gaining from the ongoing decline.
Economic Calendar Analysis
On Thursday, the publication of the US Core PCE Price Index at 13:30 GMT is most likely going to cause a USD move, as the US monetary policymakers watch this indicator.
EUR/USD hourly chart analysis
A move of the pair below 1.0920 is set to immediately find support in the weekly simple pivot point at 1.0917 and the 1.0900 mark. If these levels fail to hold, the rate could easily decline to the weekly S1 simple pivot point at 1.0869 and the 1.0850 level.In the meantime, a potential recovery of the Euro against the US Dollar is set to face the 200-hour simple moving average near 1.0940, before the pair reaches the 1.0950/1.0965 range and the 100-hour simple moving average. Above these levels, note the combination of the 50-hour SMA and the weekly R1 simple pivot point near 1.0980.
Hourly Chart
EUR/USD daily chart's review
On the daily candle chart, the rate has passed above the 200-day simple moving average near 1.0830 and confirmed the SMA as support. Next target for a broader surge could be the 1.1100 mark and the 1.1250 level that have acted as resistance during summer.Daily chart
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Traders ride the decline
Prior to the GDP release, traders were 67% short and orders were 65% to buy. It appears that traders expected a decline, but had their stops and buy to open long positions close by.
After the GDP release the open positions were 64% short and pending orders were 63% to buy. The traders were positioned for the decline and are riding it down.