Investing.com - Financial Markets Worldwide
⚠ Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

EUR/USD Posts Weekly Gain in the Fed and ECB Aftermath

ByAlex Boltyan
Published 06/16/2023, 12:32 PM
Updated 07/09/2023, 06:32 AM
EUR/USD
-

The EUR/USD pair reached a fresh one-month high on Friday and is headed to post its second weekly advance in a row following the Federal Reserve (Fed) and the European Central Bank (ECB) decisions on monetary policy.

At the time of writing, the EUR/USD pair is trading at the 1.0925 area, slightly down on the day but on track to post a 1.7% weekly advance.

On Thursday, the European Central Bank (ECB) announced its decision to raise its main rates by 25 basis points and offered a hawkish stance as President Christine Lagarde said the board is "not thinking about pausing."   
 
A day before, the Federal Reserve decided to skip a rate increase but kept the hawkish rhetoric, diminishing prospects of rate cuts for the remainder of the year. Next week, Powell will testify before the US Congress. 

Overall, the euro benefited from the central banks' aftermath, rising over 100 pips over the last two days. 
EUR/USD
From a technical perspective, the EUR/USD pair holds a short-term bullish bias, according to indicators on the daily chart, giving no signs of exhaustion yet. At the same time, the price is closing the week above its main moving averages. The outlook is also bullish on the weekly chart, although indicators show tamer momentum. 

On the upside, the EUR/USD pair could face the next resistance level at 1.0970 and 1.1000 ahead of April and May's monthly highs at the 1.1095 zone. On the other hand, supports are seen at the 100-day simple moving average (SMA) at 1.0805 and the 20-day SMA at 1.0760. Loss of this level would expose the 1.0700 level.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.