Bank Crisis & ECB Meetings Are In Focus, What Happened To The EUR/USD Chart?

thecekodok

 The anxious situation in the market began to ease slightly with the report of 11 giant banks in the United States (US) reportedly injecting $30 billion in deposits to First Republic Bank, one of the banks that also received bad effects such as SVB and Signature.


While yesterday's market focus was on the European Central Bank's (ECB) policy meeting at the start of the New York session, it saw interest rates raised by 50 basis points as forecast.


The ECB is seen to ignore market sentiment at the moment and continues to target interest rate increases this time to 3.50%.


The Euro currency initially showed a negative reaction by shrinking when the decision was announced, but then rose again to end trading towards the end of the session.


Meanwhile, the US dollar is gloomy, not continuing the strengthening momentum that started last Wednesday.




The chart of the EUR/USD currency pair yesterday saw the price moving horizontally around the 1.06000 zone although it was seen that there was price fluctuation during the reaction to the ECB meeting decision.


Continue to level slowly above the 1.06000 level continuing trading in the Asian session this morning (Friday), the price is seen to be still below the barrier level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart indicating that the signal is still bearish.



A price drop can occur if the US dollar continues to strengthen, pushing the price down below the 1.06000 level.


The price will retrace to the important support zone around 1.05200-1.05000 before investors assess the price reaction for the next indication.


If it still breaks lower and continues to decline, the price could go up to around 1.04000.


On the other hand if the sentiment starts to change and push the price up again, the 1.07000 level will be the first to be tested before the price will surpass the high reached this week at 1.07600.


Next, the target will return to the height of 1.08000 as expected on the bullish movement at the beginning of the week.