EURUSD
Fundamental Outlook: The European Central Bank is expected to announce another interest rate hike on Thursday, but the recent turmoil in global bank stocks has made the outlook less certain. In February, there was an unexpected increase in underlying inflation, which caused policymakers to worry that inflationary pressures might persist. However, the uncertainty in the U.S. banking sector has created concerns about potential contagion in Europe. As a result, confidence in a significant 50 basis point interest rate hike has diminished.
Technical Analysis: After three consecutive days of strong uptrend, the pair faced a barrier at 1.0750 and pulled back. However, the formation of a double bottom pattern suggests a target of 1.0800. To achieve this, the pair needs to break through the 1.0750 resistance level first. The current pullback may continue until the double bottom resistance is broken, where a retest is possible. If the decline persists, the support level to watch is at 1.0650.
Support: 1.0650 - 1.0600 – 1.0525
Resistance: 1.0750 – 1.0780 – 1.0835