The European Central Bank (ECB) raised interest rates by 50 basis points recently, but did not provide clear guidance on future rate adjustments. Although the bank is closely monitoring the Eurozone’s financial stability, it remains committed to fighting inflation. ECB policymakers, including Chief Economist Philip Lane, have emphasized the need for additional rate hikes to bring inflation below the 2% target.
The German GfK Consumer Confidence survey released on Wednesday showed a slight improvement but fell short of expert predictions. Despite this, the ECB’s commitment to tackling inflation remains unchanged. As the German CPI release approaches, it will serve as a crucial indicator for the Eurozone CPI, set to be released on Friday, as well as the ECB’s subsequent actions.
The EURUSD pair has been displaying limited fluctuations since yesterday, stabilizing around the 1.0840 level. It is worth noting that the stochastic indicator is shedding its negative momentum significantly and nearing oversold territory, while the EMA50 continues to offer positive support for the price.
Hence, the possibility of resuming the anticipated bullish trend for the near future remains, with the next major target set at 1.1032. It is crucial to maintain a level above 1.0745 in order to achieve the proposed objectives. Moreover, the price must surpass 1.0870 to facilitate the upward movement towards the anticipated target.
For today, the projected trading range lies between 1.0770 as support and 1.0935 as resistance.