EUR/USD extends the uptrend, targets the March top near 1.0760

A Research by CurrencyVeda
  • The recent breach of 1.0700 is extended by EUR/USD.
  • Following Germany, EMU Economic Sentiment is scheduled.
  • On Wednesday, the Fed is anticipated to raise rates by 25 basis points.

The stronger dollar does not stop the EUR/USD from rising further; on Tuesday, it reached new multi-session highs near 1.0740.

In the wake of the recent breakout of the crucial 1.0700 barrier, the EUR/USD currency pair moves higher and appears bullish ahead of data and the FOMC meeting.

A 25 bps rate increase at the May event appears to be in some ECB speakers’ favour, as evidenced by the daily improvement in the pair, which comes despite the greenback’s modest recovery.

Another daily increase in the German 10-year Bund yields, which this time broke through the 2.20% barrier and beyond in a move that mirrors the continued increase in their American counterparts, has provided more support for the euro.

In the lead-up to Chairperson Lagarde’s next address, the ZEW institute’s Economic Sentiment survey in Germany and the wider Euroland will be interesting to watch in the euro region.

Existing House Sales and the opening of the two-day FOMC meeting will be the main events across the pond.

Things to watch out for In EUR/USD, the bid bias remains strong and the pair soars to new highs well above 1.0700, extending the favourable start to the new trading week on Tuesday.

In the interim, despite temporarily declining recession risks, price movement in relation to the euro should continue to closely track dollar dynamics as well as the ECB’s likely next steps in an environment where high inflation is still the dominant factor.

EMU and Germany are this week’s major euro area events. ECB Lagarde, ZEW Economic Sentiment, ECB Lagarde (Wednesday), and EMU Flash Consumer Confidence, Thursday’s European Council Meeting, the EMU, Germany Instant PMIs (Friday).

Important problems with the back boiler: or not the ECB’s cycle of rate hikes will continue. Effect of the Russia-Ukraine conflict on regional inflation and growth prospects. risks of a persistent inflation.

Llevels to watch in the EUR/USD
The pair is currently up 0.18% at 1.0736, and a break above that level would target 1.0804 (weekly high February 14) on the way to 1.1032 (monthly high March 15). (2023 high February 2). On the other hand, initial support is located at 1.0516 (monthly low March 15), followed by 1.0481 (2023 low January 6) and ultimately 1.0327. (200-day SMA).