Taking a more hawkish tone, ECB President Christine Lagarde states there is much room for improvement for inflation rates and that action is still needed. ECB officials previously noted that rates will likely be increased before July to further bring down inflation. As a result, EUR/USD rises above 1.08, bringing consumer sentiment from -17.5 to -17. On the other hand, the USD is under a dovish pressure as US Debt ceiling talks are set to continue after last week. While trading is so volatile, its important to note that all trading carries risk.
From a techinical standpoint, EUR/USD rebounded after hitting last week’s low of 1.0760, and now testing the 100 sma at 1.0810. If the 100 sma is defended, a break below 1.0760 is needed to open the door towards 1.0710 the confluence of the falling trendline support and the March 23 low.