EUR/USD hesitates around the parity before several key events

EUR/USD hesitates around the parity before several key events

After briefly continuing to fall at the weekly Forex open, the EUR/USD pair rebounded sharply from a low of 0.9914 yesterday morning to a high of 1.0029 in the afternoon.

The Euro indeed had some hawkish talk from several ECB members over the weekend and Monday.

ECB rate hike of 0.75% next week?
Moreover, these hawkish exits from the ECB have prompted Danske Bank to now forecast an ECB rate hike of 0.75% for next week

EUR/USD hesitates around the parity before several key events
EUR/USD hesitates around the parity before several key events
Investing.com |
08/30/2022 08:55
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EUR/USD hesitates around the parity before several key events
Investing.com – After briefly continuing to fall at the weekly Forex open, the EUR/USD pair rebounded sharply from a low of 0.9914 yesterday morning to a high of 1.0029 in the afternoon.

The Euro indeed had some hawkish talk from several ECB members over the weekend and Monday.

ECB rate hike of 0.75% next week?
Moreover, these hawkish exits from the ECB have prompted Danske Bank to now forecast an ECB rate hike of 0.75% for next week.

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“We now expect the ECB to hike 75bp next week, to be followed by 50bp in October and 25bp in December, but we recognize the heightened uncertainty over the last two size forecasts. upside,” the bank wrote.

“This is an increase of 25 basis points from our previous rate hike forecasts at the September and October meetings, respectively, and we now see the end point in the ECB deposit rate. at 1.5%,” she added.

If Danske Banke's forecasts are confirmed, the EUR/USD could benefit greatly.

Upcoming key events for the Euro Dollar

But for now, however, the Euro Dollar is hesitant, in a narrow range around parity, as investors wait for some potentially influential data later in the day.

EUR/USD traders will indeed be watching Germany's preliminary CPI for August at 2pm, ahead of US consumer confidence and the JOLTS job vacancies report at 4pm.

However, it should be noted that the reactions could remain limited, awaiting much more important events later in the week, and in particular on Friday, with the NFP report on non-farm payrolls in the United States

EUR/USD technical analysis

From a graphical point of view, it should be noted that if the EUR/USD pair manages to stay above parity and accentuates its rebound, the next resistance to take into account will be around 1.0100.

However, taking a step back from the daily chart, it can be seen that the underlying EUR/USD downtrend will only begin to be challenged if the downtrend line visible since early February breaks, and currently positioned around 1.0250.

If the EUR/USD resumes the downward path, yesterday's lows around 0.9920 and the psychological level of 0.99 will be the next potential supports to consider.

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