EURUSD pair is trading at 1.0900 level.
The EURUSD pair is trading at 1.0900 as the event approaches, with one caveat: the US Federal Reserve (Fed) will issue its own monetary policy announcement ahead of the ECB decision.
The US Federal Reserve is largely expected to raise interest rates by 25 basis points, but aggressive remarks from Chairman Jerome Powell have fueled speculation that the US central bank is not as near to a pivot as the market believes. Since hitting the present price zone in mid-January, the EURUSD has been in a consolidation period.
The pair reached a high of 1.0928 in the previous week, its highest level since April 2022. Buyers are defending the 1.0800 level, while a more crucial support level is at 1.0745, the 2022 Fibonacci retracement. Despite a generally gloomy atmosphere, the pair retains its positive posture, suggesting that speculative interest is unwilling to buy the US Dollar.
Following a more dovish remark from US Federal Reserve Chair Powell, a hawkish message from President Lagarde might lead to an advance towards the key 1.1000 threshold and beyond.
The inverse situation may result in the pair losing the indicated Fibonacci support, albeit bulls and bears may fight it out until one side emerges triumphant.
Daily SMA20 | 1.0795 |
Daily SMA50 | 1.0647 |
Daily SMA100 | 1.0293 |
Daily SMA200 | 1.0314 |