Type : Bullish Rise
Resistance : 1.04665
Pivot: 1.03120
Support : 1.00260
Preferred Case: On the H4, with prices breaking the descending channel, we have a bullish bias that price will rise from the pivot at 1.03120 where the 38.2% fibonacci retracement is to the 1st resistance at 1.04665 where the overlap support is.
Alternative scenario: Alternatively, price could break pivot structure and drop to the 1st support at 1.00260 where the swing low support.
Fundamentals: The ECB surprised markets with a 50bps rate increase at its recent meeting, the first rate increase since 2011. However, uncertainty over strong inflation growth, recession in the Eurozone, and the ongoing gas crisis has led to the Euro failing to find sustainable upside moves beyond the resistance level.
Resistance : 1.04665
Pivot: 1.03120
Support : 1.00260
Preferred Case: On the H4, with prices breaking the descending channel, we have a bullish bias that price will rise from the pivot at 1.03120 where the 38.2% fibonacci retracement is to the 1st resistance at 1.04665 where the overlap support is.
Alternative scenario: Alternatively, price could break pivot structure and drop to the 1st support at 1.00260 where the swing low support.
Fundamentals: The ECB surprised markets with a 50bps rate increase at its recent meeting, the first rate increase since 2011. However, uncertainty over strong inflation growth, recession in the Eurozone, and the ongoing gas crisis has led to the Euro failing to find sustainable upside moves beyond the resistance level.