Euro rises for the third consecutive session
The European Central Bank made history by increasing interest rates to their highest-ever level
Janet Yellen stated that she doesn't see any signs of the US economy slowing down.
The euro has been rising against the US dollar for the third consecutive session.
The euro has been on the rise against most major currencies for the third consecutive session, primarily due to the declining dollar index and the cautious anticipation surrounding the upcoming decision on interest rates by the US Federal Reserve.
Last week, the European Central Bank made the significant move of increasing interest rates to their highest ever levels in an attempt to control inflationary pressures.
Today, the Monetary Policy Committee of the US Federal Reserve is convening, and their meeting is set to continue until Wednesday when they will announce their decision on interest rates. These developments are being closely monitored by market participants.
There are growing concerns about renewed inflationary pressures, especially as oil prices have reached their highest point in the last 10 months. Investors are worried that interest rates might remain elevated for a longer duration than initially anticipated. As a result, investors are eagerly awaiting any signals regarding the future direction of the US Federal Reserve, which could come from the monetary policy statement or Federal Reserve Chair Jerome Powell's press conference.
US Treasury Secretary Janet Yellen has expressed confidence in the continued strength of the US economy. However, she did caution that the failure of Congress to pass legislation to fund the government could pose a threat to the economy's momentum. Yellen also mentioned that the United States is closely monitoring the fluctuations in oil prices.
The euro began the second session of the week with a slight dip against the US dollar, and the currency pair is currently trading near the 1.0710 dollar level.
Key pivot points and technical levels that could influence the EURUSD movements are as follows:
Following a decline in the euro-dollar pair, it tested the support level of 1.0620 but managed to rebound from that level. At present, it is trading around the 1.0710 level. There is a likelihood of continued upward movement, potentially testing the resistance level of 1.0770. If this level is surpassed, it could lead to further upward momentum, testing the level of 1.0850.
However, if the pair retreats and breaks the support level of 1.0620, it may result in additional declines, with the pair testing the support level of 1.0520.