EUR/USD Makes Decline Again After US Inflation Remains At 40 -Year High

thecekodok

 The focus of investors in the New York session on Thursday was the results of the European central bank meeting as well as the release of US inflation data.


The European Central Bank (ECB) kept interest rates unchanged as expected, but ECB President Christine Lagarde gave little surprise in the announcement of their asset purchase program (APP).


Measures to reduce asset purchases (tapering) will be accelerated to end at the end of the third quarter of this year compared to the projection in October previously.


Meanwhile, US inflation data remained at a 40 -year high with an annual inflation reading of 7.9%. The US dollar strengthened again following published data.


The strengthening of the US dollar was also supported by the development of the fourth time Russia -Ukraine talks that ended gloomily without the agreement of a ceasefire and humanitarian corridors.


The risky market environment and added attraction to the US dollar have put pressure on the Euro despite investors evaluating President Lagarde’s hawkish -toned statement.




Examining the price movement on the chart of the EUR/USD currency pair, the significant price surge that took place last Wednesday did not succeed in continuing in Thursday's trading yesterday.



The US dollar, which managed to regain its dominance, pushed the price back to below the 1.1000 level after the initial rise reached the 1.11200 high in the SBR (support become resistance) zone.


Investors are waiting for further price movement signals while the price hovers around the Moving Average 50 (MA50) level on the 1 -hour time frame after the price declines below it.


The lower decline if continued is seen to return to the 1.0800 support zone like the initial decline last week.


As for the expectation for the price to continue rising, the SBR (support become resistance) zone of 1.11200 will be tested again after becoming the price resistance for this week.


The higher rise will lead to the level of 1.12000 and the zone of 1.12700 which was the focus of previous trades.