Overnight, the EURUSD saw choppy price action with no clear directional bias as the volatility saw price fluctuate between the key support level of 1.0530 and the 23.60% Fibonacci retracement and price level of 1.0567.
Following the "explosive" news from the US that the Federal Reserve was ready to speed up on rate hikes, which saw the EURUSD trade significantly lower from the 1.07 resistance area, the market is now shifting its attention to the ECB and its decision on the upcoming and future interest rates.
While a 50bps rate hike for March is pretty much priced in, the question is, what happens after March?
With the ECB rate decision due next week, the current directional bias of the EURUSD could still be heavily influenced by the DXY.
The price is likely to continue consolidating with a strong breakout potential developing. However, if the EURUSD is unable to break above the 1.0570 price level, the downtrend is likely to continue, with the next key support level (beyond 1.0530) at 1.0480.
Following the "explosive" news from the US that the Federal Reserve was ready to speed up on rate hikes, which saw the EURUSD trade significantly lower from the 1.07 resistance area, the market is now shifting its attention to the ECB and its decision on the upcoming and future interest rates.
While a 50bps rate hike for March is pretty much priced in, the question is, what happens after March?
With the ECB rate decision due next week, the current directional bias of the EURUSD could still be heavily influenced by the DXY.
The price is likely to continue consolidating with a strong breakout potential developing. However, if the EURUSD is unable to break above the 1.0570 price level, the downtrend is likely to continue, with the next key support level (beyond 1.0530) at 1.0480.
