EUR/USD: Bulls continue to target 1.0600

• EUR/USD holds gains beyond 1.0500.
• Lagarde announced a 25 basis point rate hike in July.
• Lagarde suggested another rise in the official interest rate in September.

The EUR/USD remains in the familiar range above 1.0500 at the beginning of the week.

EUR/USD is apathetic over Lagarde’s comments

EUR/USD is holding on to positive performance amid widespread selling pressure around the USD on Monday.

Meanwhile, the pair showed no significant reaction to President Lagarde’s testimony before the European Parliament. In fact, Lagarde said that the bank plans to raise the official interest rate by 25 basis points next month, while she also left the door open for another hike in the September event.

In addition, Lagarde declined to comment on any features of a new ECB bond-buying tool, while stressing that the conditions are in place for further economic growth in the region and that the fight against fragmentation is a precondition for the success of monetary policy.

What to keep in mind around the euro

EUR/USD remains in recovery mode unchanged and manages to recover the area beyond 1.0500 on Monday.

The resumption of the buying bias responds to the note offered in the US dollar, especially after the interest rate hike by the Fed last week.

However, the EUR/USD is still far from leaving and is expected to continue at the mercy of the dynamics of the dollar, geopolitical concerns and divergence between the Fed and the ECB, while the increase in German yields, the persistently high inflation in the euro area and a decent pace of economic recovery in the region also support an improving mood around the euro.

Technical levels

At the moment the pair is gaining 0.29% at 1.0523 and the immediate upside barrier is at 1.0601 (weekly high June 15), followed by 1.0649 (55-day SMA) and finally 1.0786 (monthly high June 30). of May). On the other hand, a break below 1.0358 (monthly low Jun 15) would target 1.0348 (low May 13) on the way to 1.0300 (psychological level).