EUR/USD is highly volatile because of ECB

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On June 9, the European Central Bank published its interest rates and Monetary Policy Statement. In general, as expected, the central bank kept its interest rate's unchanged. Meanwhile, the central bank revealed that it would hike its interest rates by 0.25% in July. Moreover, the ECB is set to end its Asset Purchase Program on July 1.

The EUR/USD reacted to the news with an increase of volatility by fluctuating in a 60 base point range from 1.0750 down to 1.0690. In the aftermath of the initial announcement, the ECB hosted a press conference, which increased the range of volatility.

Economic Calendar Analysis



On Friday, the US Consumer Price Index release at 12:30 GMT is set to impact all financial markets through the value of the USD.

EUR/USD hourly chart's review

From a technical analysis perspective, the events broke the resistance zone at 1.0747/1.0765. It indicates that the pair might move higher.

If the rate moves higher, resistance might be encountered in the weekly R1 simple pivot point at 1.0793, May 30 high at 1.0787, prior to reaching the 1.0800 mark. On the other hand, a decline of the Euro against the US Dollar might look for support in the 1.0625/1.0640 range.

Hourly Chart

EUR/USD daily chart's review

On the daily candle chart, the pair has reached the upper trend line of the channel down pattern, which has guided the rate since the start of 2022. It appeared initially that the resistance of the line had held and started a decline.

Daily chart




Traders are slightly long

On Wednesday, on the Swiss Foreign Exchange, trader open positions were bullish, as 55% of open position volume was in long positions.

Meanwhile, trader set up pending orders in the 100-pip range around the pair were 52% to sell the Euro against the USD.

On Thursday, the sentiment was 56% long and pending orders were 51% to sell.

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