EURUSD Outlook 20th March 2023
The EURUSD spiked significantly lower from 1.0760 down to the key support level of 1.0525 due to the Credit Suisse issue.
Markets were anticipating that the European Central Bank could scale back on its rate increases from 50bps to 35bps, a contributing factor to the drop in the Euro.
However, the ECB maintained its decision to hike rates by 50bps and reiterated that it intends to bring inflation down to its 2% target level and that future decisions would be data dependent.
This saw the EURUSD climb steadily higher to approach the 1.07 round number resistance level again.
Since the EURUSD broke above the 61.8% fib level, the price could consolidate along this level between 1.0650 and 1.07 for the interim.
A break of the consolidation to the downside could see the EURUSD retest the near term support of 1.0625 which is the 38.2% fib retracement level.
However, I'd still be looking for a rebound to the upside, with the immediate key resistance level at 1.0760.
Markets were anticipating that the European Central Bank could scale back on its rate increases from 50bps to 35bps, a contributing factor to the drop in the Euro.
However, the ECB maintained its decision to hike rates by 50bps and reiterated that it intends to bring inflation down to its 2% target level and that future decisions would be data dependent.
This saw the EURUSD climb steadily higher to approach the 1.07 round number resistance level again.
Since the EURUSD broke above the 61.8% fib level, the price could consolidate along this level between 1.0650 and 1.07 for the interim.
A break of the consolidation to the downside could see the EURUSD retest the near term support of 1.0625 which is the 38.2% fib retracement level.
However, I'd still be looking for a rebound to the upside, with the immediate key resistance level at 1.0760.
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