EUR/USD: Interest Rate Hike Expectations - Technical Analysis

May 2, 2023

EUR/USD is approaching 1.1050 following a recovery, supported by a drop in the USD Index after a short-lived rebound. The Federal Reserve is widely expected to raise interest rates by 25 basis points to maintain pressure on US CPI. However, investors hold differing views on the pace of interest rate hikes that the European Central Bank will adopt. On the technical side, yesterday's price rebounded from the dynamic trendline at 1.0970, with the next resistance or target point at 1.1050 and 1.1100. Alternatively, should the price reverse and dip below 1.0950, the next support level would be at 1.0850.