Fundamental Outlook: According to the chief economist of the European Bank for Reconstruction and Development, Beata Javorcik, market predictions of interest rate cuts in central Europe are overly optimistic due to the possibility of inflation remaining higher than expected. Despite the slowdown of the region, caused by the fallout from the conflict in Ukraine, rate-setters in central Europe, who led the global monetary tightening trend in 2021, are currently focused on maintaining stable rate policies.
Technical Analysis : After four consecutive days of strong uptrend, the pair faced a barrier at 1.0760 and pulled back. The parity is trading above the 50- day exponential moving averages currently and it is important to stay above that level for further increases. However, the formation of a double bottom pattern suggests a target of 1.0800. To achieve this, the pair needs to break through the 1.0760 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.