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EURUSD Correction within the Ascending Corridor of 1.057–1.120

3/23/2023 12:02 PM

Against the lack of important macroeconomic publications, the EUR/USD pair is moving within the corrective trend at 1.0894.

The focus of investors is on the comments of the head of the European Central Bank (ECB), Christine Lagarde, who said that a significant adjustment in monetary policy has been made since the regulator has already increased interest rates by 350.0 basis points since July last year. She added that despite the persistence of high inflation and uncertainty about its further dynamics, at the moment, it is likely that the continuation of the “hawkish” course is a justified step, even given the slowdown in the economy and a likely crisis in the banking sector. The head of the ECB said that the public can be sure that the regulator will achieve its goal and reduce inflation to 2.0% in the medium term. Recall that last week the interest rate was increased by 50.0 basis points but there were no instructions on further dynamics of the value.

The US dollar, as expected, is declining after yesterday's "neutral" decision by the US Federal Reserve to adjust interest rates by 25.0 basis points. The head of the regulator, Jerome Powell, explained that the agency is focused on the main long-term goal – achieving inflation of 2.0%. Thus, we can assume that interest rates will rise again in May, to 5.00–5.25%.

On the daily chart, the trading instrument is correcting within the global ascending corridor with dynamic boundaries of 1.0570–1.1200.

Technical indicators reversed upwards: fast EMAs on the Alligator indicator expand the range of fluctuations upwards, and the AO histogram forms ascending bars, rising in the buying zone.

Resistance levels: 1.0940, 1.1031. | Support levels: 1.0790, 1.0570.

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