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Euro Faces Stress Amid Anticipated Fee Hikes by Fed and ECB


The key foreign money pair stays underneath strain round 1.1120 on Monday.
Buyers are feeling the strain, as essentially the most eventful week of this month has begun. Each the US Federal Reserve and the European Central Financial institution will maintain conferences, and choices on rates of interest are anticipated on Wednesday and Thursday, respectively.

The Fed is anticipated to boost charges by 25 foundation factors (to five.5% every year) and sign the tip of the “tight” part in financial coverage. Buyers additionally count on the ECB to sign a fee hike. The European regulator’s stance is extra hawkish, which can create the premise for additional development of the credit score price.
In any case, all market reactions will probably be carefully linked to the choices of the Fed and ECB. Up to now, market sentiment is favouring the US foreign money.

Technical evaluation of the value chart

On the H4 chart, EUR/USD has carried out the second upward impulse, finishing the primary half of the third declining wave. In the meanwhile, the market is forming a consolidation vary round 1.1125. The value is anticipated to interrupt the vary downwards and proceed the wave to 1.1033 by the development. It is a native goal. After the worth reaches this stage, a correction to 1.1122 may type (with a take a look at from under), adopted by a decline to 1.0990. That is the primary goal. Technically, the MACD indicator confirms this situation; its sign line is aimed strictly downwards to the zero mark.

EUR/USD forecast

EUR/USD forecast

On the H1 chart, EUR/USD is forming a consolidation vary round 1.1128. It’s interpreted as a development continuation sample. Breaking the vary downwards would possibly open the potential for the second half of this wave. The goal of the wave could possibly be 1.1030. Technically, the Stochastic oscillator additionally helps this outlook, with its sign line having damaged the 50 mark downwards and taking place to 20.

EUR/USD forecast

EUR/USD forecast


Any forecasts contained herein are primarily based on the writer’s explicit opinion. This evaluation might not be handled as buying and selling recommendation. RoboForex bears no accountability for buying and selling outcomes primarily based on buying and selling suggestions and critiques contained herein.