Daily Analysis : EURUSD ( 15 Dec 2022 )

The pair hold above the 1.0600 and struggle to test 1.0700 level. Due to FED’s hawkish stance DXY strenghten but was limited on the pair’s falling. Today, traders are waiting hawkish stance from ECB like as FED. FED’s members foresee that interest rate will reach to %5.10 level. Thus, 75 bps rising from FED was guaranteed. There is a rising energy crisis in the Eurozone due to the war with Russia and Ukraine. The market expectation is for the ECB to increase the interest rate by 50 basis points to %2.5 in order to reach the target inflation despite the recession fears.

On daily chart, the pair is repeated failures to cross the %61.8 Fibonacci retracement level between 1.1495 (February high) and 0.9535 (September 28) around 1.0740. Technically, above 1.0460 (21DMA), the momentum will be positive. Yet, the Daily RSI is hovering around overbought condition. Support is seen at 1.0620, then 1.0555. Resistance 1.0695. If the break comes, the pair continue to rise till towards 1.0740/60 region.

Support: 1.0620 – 1.0555 – 1.0460

Resistance: 1.0695 – 1.0740/60 – 1.0830