Euro Rally Stops At Resistance After ECB Decision

2022.10.28 04:36

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The has risen in the last few sessions, ahead of the US later today. The main reason for a strong dollar can be stocks after missed earnings from some major US companies.

We can also see some dollar strength vs. the after the not-so-hawkish ECB. They sound a little worried about future economic activity. They also said they would make further decisions about the policy meeting by meeting. It means they are going to be careful with their decisions, so this is something that causes a turn for the euro.

EUR/USD 1-hour chart.

We see an intraday sell-off in impulsive fashion from this week’s highs, so we have to be aware of more downside until we see a higher degree of a-b-c drop. Also, we see trading at the resistance line from 2022 highs. An unsuccessful breakout and potential upturn on the index can also be bearish for the euro.

DAX daily chart.

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