EUR/USD Trades Near 1.07 Key Resistance Ahead of ECB
2023.10.24 06:20
Stocks stabilized in the last few sessions and crude came down after the news that Hamas released some of the Israeli hostages. At the same time USD came lower pushed by lower US yields, but not sure if risk-off is done here. It’s just too much geopolitical risk on the table at the moment still, so not sure if big players wan to be long stocks here.
Looking at pair, it had some nice bounce in the last 24 hours, back to 1.07 which is not acting as a very strong resistance. I would not be surprised if the pair comes down actually, since it’s bery hard to trust Monday flows, plus, we will rarely see directional moves ahead of key events the ECB this Thursday.
There are more and more speculations that ECB is done with rates, and that they will not raise this year anymore, which can certainly keep EURUSD pair in a downtrend. Technically we see pair at 1.07 swing resistance, at the same area of 50d SMA.
Grega
