{"id":64374,"date":"2023-06-16T11:31:47","date_gmt":"2023-06-16T08:31:47","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=64374"},"modified":"2024-07-10T17:05:47","modified_gmt":"2024-07-10T14:05:47","slug":"ecb-hikes-rates-while-boj-remains-on-hold","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/th\/ecb-hikes-rates-while-boj-remains-on-hold\/","title":{"rendered":"ECB hikes rates while BoJ remains on hold"},"content":{"rendered":"

The USD lost ground across the board yesterday against its counterparts allowing for gold\u2019s price to rise, while US stock markets were clearly in the greens implying a more risk on market sentiment. The EUR is about to end the week stronger against the USD, JPY and GBP in a sign of a broader strength for the common currency. On a monetary level, ECB\u2019s interest rate decision<\/a> tended to provide additional support for the EUR, as the bank hiked rates as expected by 25 basis points and also signaled that more rate hikes lay ahead. It\u2019s characteristic that ECB President Christine Lagarde in her press conference that followed the release of the decision, reaffirmed that the bank is not at the end of its rate hiking cycle with another 25 basis points rate hike in the July meeting being probable. This was also the market\u2019s expectation and EUR traders seem not to have been disappointed. EUR\/USD rose yesterday and broke the 1.0855 (S1) resistance line, now turned to support. We tend to maintain our bullish outlook for the pair as the slope of the pair\u2019s movement indicative of the upward trendline has steepened. Furthermore we highlight the RSI indicator which has risen above the reading of 70, indicative of the strong bullish sentiment of the market yet at the same time the RSI indicator may imply that the pair has reached overbought levels and may be ripe for a correction lower.  Similar signals come from the Bollinger bands, as the pair broke the upper boundary in its upward movement before stabilizing somewhat in today\u2019s Asian session. Should the bulls maintain control over the pair we may see it breaking the 1.1000 (R1) resistance line and set as the bulls\u2019 next possible target the 1.1175 (R2) resistance level. Should on the other hand the pair correct lower and the bears find a chance to take over, we may see EUR\/USD correcting lower breaking the prementioned upward trendline in a first sign that the upward movement has been interrupted, break the 1.0855 (S1) support line and aim for the 1.0695 (S2) level.     <\/p>\n\n\n\n

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