- The dollar stable against the yen and the European currencies.
- Lagarde ratifies the path of raising interest rates.
- ECB minutes suggest some initially wanted a stronger December hike
- EUR/USD remains sideways, in a wide range.
EUR/USD hit a high of 1.0838 on Thursday before easing back to 1.0803, unaffected by Lagarde’s comments and ECB minutes ahead of US data.
ECB mixed signals
At the Davos economic forum, Christine Lagarde, the president of the European Central Bank (ECB), stated that inflation is too high and that they will continue to raise rates. She was optimistic about the possibility of a “small contraction” in the Eurozone. Other ECB officials, such as Klass Knot, reiterated that they see more significant rate hikes ahead. This helped the euro, which had fallen in recent days, especially against the pound and the Swiss franc, after reports suggested that after a 50 basis point rise, the ECB would soften the pace of increases.
The minutes of the last meeting of the Governing Board of the European Central Bank were recently published. The document stated that a large number of members expressed a preference for a rise of 75 basis points in the reference rates. At that meeting, held on December 15, the central bank raised rates by 25 basis points.
Now comes the turn of US data with the weekly report of unemployment benefit claimsthe start of housing and construction permits and the philly fed.
technical overview
The EUR/USD continues to move in a wide range, in the area of maximums in months. If it manages to establish itself above 1.0850, a test towards the 1.0900 area and a new bullish leg would be expected, in line with the dominant trend.
In the opposite direction, 1.0750/70 looms as key support. A drop below would be a sign of an extension of the correction, which could target the 20-day SMA, which is passing through 1.0695 today.
technical levels
EUR/USD
Panorama | |
---|---|
Last Price Today | 1.0809 |
Today’s Daily Change | 0.0020 |
Today’s Daily Change % | 0.19 |
Today’s Daily Open | 1.0789 |
Trends | |
---|---|
20 Daily SMA | 1.0687 |
SMA of 50 Daily | 1.0548 |
SMA of 100 Daily | 1.0214 |
SMA of 200 Daily | 1,031 |
levels | |
---|---|
Previous Daily High | 1.0888 |
Minimum Previous Daily | 1.0766 |
Previous Weekly High | 1.0868 |
Previous Weekly Minimum | 1.0639 |
Maximum Prior Monthly | 1.0736 |
Minimum Prior Monthly | 1.0393 |
Daily Fibonacci 38.2% | 1.0813 |
Daily Fibonacci 61.8% | 1.0841 |
Daily Pivot Point S1 | 1.0741 |
Daily Pivot Point S2 | 1.0693 |
Daily Pivot Point S3 | 1,062 |
Daily Pivot Point R1 | 1.0862 |
Daily Pivot Point R2 | 1.0936 |
Daily Pivot Point R3 | 1.0984 |
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.