EURUSD Pauses as Prices Test Support EURUSD pauses as prices test support of 50-day MA. As prices battle to break free from a wider range of support and resistance, cling to the 50-day moving average (MA)
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EURUSD has been supported by the hawkish ECB
Since September 2022, the EURUSD has been rising sharply, supported by an aggressive ECB and a declining USD. Despite the Federal Reserve’s aggressive rate increases throughout last year. Market players were hoping for a more gradual stiffening or a change in direction soon.
Higher rates have added to the recent move. As the ECB is still determined to raise rates until inflation shows discernible indications of slowing. The Fed Chair Jerome Powell’s aggressive comments at the summit last month. Coupled with the repricing of rate expectations, increased demand for the dollar. Yet, after tumbling to previous support at 1.0524 on March 8. Worries regarding the stability of the US financial system were triggered by the failure of (SVB) and Signature Bank.
PRICE ANALYSIS FOR EURUSD
A weaker dollar and a hawkish ECB (European Central Bank) enabled the euro to advance against the dollar after it pushed through trendline resistance (estimated from the 2021 top) in Jan. The 2021–2022 move’s 50% Fibonacci retracement (the midpoint) was reached by the EURUSD surge. And values climbed further prior to reaching a peak at the 1.103 high set in Feb.
A sudden drop that saw EURUSD revisit support at the low point of March (1.0523) ahead of moving high was the next development. The FOMC meeting on Wednesday gave prices an extra boost of confidence. Even though a zone of co-range of technical support and resistance was developing between the March base, and the 50-day MA (1.073).
Bulls were unable to advance above 1.090. Therefore, the 50-day moving average (MA) entered the frame once more. And is still offering support both for short-term and long-term moves.
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