Euro Consolidates Post ECB Hike as US Dollar Eyes Fed Move. Where to for EUR/USD?

[MongiIG]

Jul 25, 2022 | DailyFX
Daniel McCarthy, Strategist

EURO, EUR/USD, ECB, US DOLLAR, FED, CHINA, GBP, AUD, NZD - TALKING POINTS

• The Euro continues to trade sideways as ECB and Fed rate moves dominate
• APAC equities and growth linked currencies are lower as risk assets slide
• All eyes on the Fed from Wednesday. Will a breakout unfold for EUR/USD?

The Euro held its ground on Monday in the aftermath of a larger than expected 50-basis points (bps) hike on Friday.

Robert Holzmann, a member of the ECB Governing Council, said late on Sunday night Austrian time, that a moderate recession may have to be tolerated by the ECB.

EUR/USD TECHNICAL ANALYSIS

EUR/USD has been caught in a 1.0120 – 1.0270 range since Tuesday last week. These levels may provide support and resistance respectively.

Support might also lie at the low of 0.9952, while could be offered at the break points in the 1.0340 – 1.0360 area.

The bigger picture shows that it remains within a descending trend channel.

Chart created in TradingView