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EUR/USD trims gains, remains above 1.0800 after ECB and Lagarde minutes

  • 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

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