Euro gains traction on hawkish comments
The Euro rose across the board in early US trading on Monday, lifted by hawkish comments from the chief of Austrian central bank, who said that the ECB should lift its interest rates to 4.5% in 50 basis points hikes at each of its next four meetings in March, May, June and July.
Stubbornly high inflation would prompt the central for more radical actions which will push the borrowing cost above initially estimated peak at 4%, despite that higher rates would hurt economic growth.
Fresh bullish acceleration is pressuring the first resistance at 1.0691 (Mar 1 high) violation of which would generate initial reversal signal and expose more significant barriers at 1.0723 (Fibo 38.2% of 1.1032/1.0532 downleg / 10 WMA) and 1.0770/82 (daily Ichimoku cloud top / 50% retracement / daily Kijun-sen) which mark upper pivots and break would add to reversal signal.
Today’s close above 1.0660 (broken20DMA) is seen as a minimum requirement to keep fresh bulls in play for further advance.
Daily technical studies are improving as the price action rose above 10/20DMA’s; rising RSI is moving through neutrality territory and north-heading 14-momentum is approaching the centreline which separates positive from negative territory, however, initial bullish signals still require verification on lift through 1.0723 pivot.
Res: 1.0704; 1.0723; 1.0770; 1.0803
Sup: 1.0650; 1.0614; 1.0576; 1.0532