EUR/USD Price Analysis: Hovers above 1.0900 on ECB Lagarde’s hawkish comments


  • EUR/USD strengthened as ECB President Lagarde stated that it is premature to declare victory over inflation.
  • The pair could re-attempt to reach the 1.1000 psychological level as technical indicators support the upward trend.
  • The psychological level at 1.0900 acts as the immediate support backed by the seven-day EMA at 1.0874.

EUR/USD attempts to recover its losses recorded in the previous session, trading slightly higher around 1.0910 during the Asian session on Wednesday. The European Central Bank (ECB) President Christine Lagarde's hawkish statements overnight provide some support for the EUR/USD pair.

President Lagarde stated at a Berlin event that it is too early to declare victory over inflation and that bets based on short-term data flow are premature.

The technical indicators for the EUR/USD pair support the current upward trend. The 14-day Relative Strength Index (RSI) above 50 indicates bullish sentiment, indicating that the pair is gaining momentum.

Furthermore, the Moving Average Convergence Divergence (MACD) line is above the centerline, with divergence above the signal line, indicating that the EUR/USD pair could re-attempt to target the barrier at the 1.1000 psychological level, following August’s high at 1.1064.

On the downside, the psychological level at 1.0900 emerges as the immediate support, following the seven-day Exponential Moving Average (EMA) at 1.0874 followed by the next major level at 1.0850. A decisive break below the level could put pressure on the EUR/USD pair to navigate the region around the 23.6% Fibonacci retracement at 1.0841.

EUR/USD: Daily Chart

EUR/USD: More technical levels to watch

Overview
Today last price 1.0912
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.0912
 
Trends
Daily SMA20 1.0716
Daily SMA50 1.064
Daily SMA100 1.0792
Daily SMA200 1.0807
 
Levels
Previous Daily High 1.0965
Previous Daily Low 1.09
Previous Weekly High 1.0909
Previous Weekly Low 1.0665
Previous Monthly High 1.0695
Previous Monthly Low 1.0448
Daily Fibonacci 38.2% 1.0925
Daily Fibonacci 61.8% 1.094
Daily Pivot Point S1 1.0886
Daily Pivot Point S2 1.0861
Daily Pivot Point S3 1.0821
Daily Pivot Point R1 1.0951
Daily Pivot Point R2 1.0991
Daily Pivot Point R3 1.1016

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

Australian Dollar extends gains despite  mixed PMI

Australian Dollar extends gains despite mixed PMI

The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions. 

AUD/USD News
Japanese Yen fails to build on stronger CPI-led intraday uptick against USD

Japanese Yen fails to build on stronger CPI-led intraday uptick against USD

The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan. This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.

USD/JPY News
Gold price advances to near two-week top on geopolitical risks

Gold price advances to near two-week top on geopolitical risks

Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment

Gold News
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time. 

Read more
A new horizon: The economic outlook in a new leadership and policy era

A new horizon: The economic outlook in a new leadership and policy era

The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures