EUR/USD: consolidation near 1.1000
Current trend
The European currency shows mixed dynamics of trading against the US dollar during the Asian session, consolidating near 1.1000 and local highs from March 10.
The day before, the instrument managed to demonstrate a fairly active growth, despite the publication of the decision of the US Fed on the planned increase in interest rates by 25 basis points for the first time since 2018. Committee members voted almost unanimously (8 people participating in the meeting voted for the increase), which launched the indicator adjustment cycle. In total, 6-7 increases of 0.25% each are expected this year. In addition, the regulator intends to start reducing its 8.9 trillion dollar balance sheet at one of the next meetings. It is worth noting that the "hawkish" rhetoric of the US financial authorities is aimed at curbing maximum inflation, which reached 7.9% in February on an annualized basis, showing the highest result in 40 years. The Chair of the US Federal Reserve, Jerome Powell, noted that the increase in the cost of energy and other goods against the backdrop of a special operation carried out by the Russian authorities in Ukraine will become an additional factor in increasing consumer prices in the short term and will exceed the target value of 2%. At the same time, it should be noted that the decision of the regulator provoked only a short-term growth of the dollar, since the traders have already managed to put this event into quotes.
In turn, the euro is supported by hopes for a peaceful resolution of the conflict between Russia and Ukraine. Traders are hoping for progress in the negotiation process, citing comments from officials from both countries as arguments.
Today, the focus of investors is on the February statistics on consumer prices in the euro area, as well as the speech of the President of the European Central Bank (ECB), Christine Lagarde.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic demonstrates a similar dynamics, signaling in favor of the development of the corrective increase in the nearest future.
Resistance levels: 1.1051, 1.1100, 1.1150, 1.1185.
Support levels: 1.1000, 1.0957, 1.0900, 1.0860.
The European currency shows mixed dynamics of trading against the US dollar during the Asian session, consolidating near 1.1000 and local highs from March 10.
The day before, the instrument managed to demonstrate a fairly active growth, despite the publication of the decision of the US Fed on the planned increase in interest rates by 25 basis points for the first time since 2018. Committee members voted almost unanimously (8 people participating in the meeting voted for the increase), which launched the indicator adjustment cycle. In total, 6-7 increases of 0.25% each are expected this year. In addition, the regulator intends to start reducing its 8.9 trillion dollar balance sheet at one of the next meetings. It is worth noting that the "hawkish" rhetoric of the US financial authorities is aimed at curbing maximum inflation, which reached 7.9% in February on an annualized basis, showing the highest result in 40 years. The Chair of the US Federal Reserve, Jerome Powell, noted that the increase in the cost of energy and other goods against the backdrop of a special operation carried out by the Russian authorities in Ukraine will become an additional factor in increasing consumer prices in the short term and will exceed the target value of 2%. At the same time, it should be noted that the decision of the regulator provoked only a short-term growth of the dollar, since the traders have already managed to put this event into quotes.
In turn, the euro is supported by hopes for a peaceful resolution of the conflict between Russia and Ukraine. Traders are hoping for progress in the negotiation process, citing comments from officials from both countries as arguments.
Today, the focus of investors is on the February statistics on consumer prices in the euro area, as well as the speech of the President of the European Central Bank (ECB), Christine Lagarde.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic demonstrates a similar dynamics, signaling in favor of the development of the corrective increase in the nearest future.
Resistance levels: 1.1051, 1.1100, 1.1150, 1.1185.
Support levels: 1.1000, 1.0957, 1.0900, 1.0860.
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