Aggressive ECB Rates might push EUR higherConsidering tomorrow´s ECB decison (+50 points agressive hike vs coming +25 FED hike) we might see a change in trend and EUR is likely to move higher. 2023 EURUSD bullish move was driven by ECB hiking rates and they will keep raising them in the next two meetings (16.03 and 02.05) to 4. Hence EUR is likely to keep trending higher intil May 2. After May 2 meeting (it is supposed to be the last hike for 2023) we are likely to see EUR dropping back to 1.0 area as my previous posts suggested. The last ECB 50 points hike did not save EUR from 250 pips fall (after FED hiked rates by 25 points). But we sohould consider cumulutive ECB actions, agressively hiking rates during every meeting. Hence it is unlikely that EUR will drop another 250 pips but contonue back to 1.10 and possible higher.
We are likely to see it around 1.10 at the next ECB meeting in May.
It is hard to pinpoint the entry, as it well may deep below 1.05 before it goes to 1.10.
But we will surely see a trending market for next month.
FOR EDUCATIONAL PURPOSES ONLY.
