The ECB rate decision is going to appear today, 9 July 2022 where no surprising rate hike is expected from the ECB. However, analysts expect a hawkish tone regarding the current higher inflation that should be eased. In that case, there is a higher possibility of a rate hike in July with a hawkish sentiment, which would create bullish pressure on the EURUSD price.
EURUSD Outlook Before ECB Rate Decision
EURUSD trades within a corrective momentum where the recent price was indecisive within 1.0788 to 1.0631 level. After testing the 1.0345 bottoms, the EURUSD trend remains bullish which boosted the momentum after breaking above the 1.0600 level. In that case, the prices are likely to reach 1.0900 before continuing the bearish momentum.
The news-driven sentiment could make an immediate selling pressure where any exhaustion below the 1.0631 would eliminate the selling side liquidity increasing the bullish opportunity. The alternative approach is to wait for a daily candle above the 1.0800 level and a considerable correction before aiming for the 1.0900 level.
- EURUSD Daily Support level 0.0656
- EURUSD Daily Resistance Level 1.0790
- EURUSD daily 20 EMA level 1.0680
