EUR/USD Falls to 1.1486 After Hawkish Fed and ECB Rate Hikes
The euro slides to 1.1486 as traders digest unanimous rate hikes from both the Federal Reserve and the European Central Bank.
Key points
- EUR/USD is trading at 1.1486, reflecting pressure from recent rate decisions by major central banks.
- Both the ECB and the Federal Reserve hiked rates by 0.25%, with officials hinting at future increases.
- DailyForex advises a sell signal with a take-profit at 1.1400 and a stop-loss at 1.1550.
EUR/USD trades at 1.1486, pressured by recent hawkish signals from central banks. Investors focus on the Federal Reserve and European Central Bank decisions this week.
DailyForex recommends selling the pair with a take-profit target of 1.1400. The suggested stop-loss level is set at 1.1550 for the coming two days.
Central Banks Signal Continued Tightening
The ECB hiked rates by 0.25% two weeks ago to combat rising inflation. Officials suggest another increase is likely before the year ends.
The Federal Reserve voted unanimously to raise rates by 0.25% last week. Chair Kevin Warsh noted that inflation remains elevated and hinted at future hikes.
Economic Calendar Lacks Major Data
No major macroeconomic news is scheduled from the US or Europe this week. Traders will monitor flash manufacturing and services activity reports.
Energy prices have also surged, with Brent and WTI jumping above $100. Diesel shortages in several countries add further pressure to global markets.
Technical Chart Shows Bearish Momentum
The pair has fallen below the 50-day Exponential Moving Average on daily charts. A bearish flag pattern is forming, suggesting continued downward movement.
The next key support level to watch is the psychological 1.1400 mark. This level represents the primary target for the current bearish outlook.
