EURUSD currency could see even more upside on ECB actions

EURUSD currency trading is slow for the start of the week due to the holidays in Germany.

The pair, however, might not move much until we get a final decision on interest rate policy decisions on Thursday. Eurozone inflation is at a record high of 8.1%, so there is even more pressure on the ECB to take action.

Speculators think interest rates will be much higher after the summer, so there are more and more buyers trying to send the pair higher.

Technically speaking, we see the EURUSD rising after breaking through the resistance line of the channel last month. With that in mind, it looks like the fifth wave is over. The recovery is quite strong and clearly in five subwaves, so this is the first leg of wave (A) of a higher degree recovery in wave 4, which may even move up to 1.0940 -1.1 after the wave recedes (B). Support stands at 1.0580/90, followed by 1.05, which may be an attractive buying opportunity in the short term. Higher stocks are also bearish USD, bullish EUR.

If you like our work, you can check out our Elliott wave services.

Twitter: @GregaHorvatFX

The author may have a position in the titles mentioned at the time of publication. Any opinions expressed herein are solely those of the author and in no way represent the views or opinions of any other person or entity..

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