How Will Euro Move After the ECB

How Will Euro Move After the ECB

2023-03-17 • Updated

The European Central Bank (ECB) raised its interest rates by 0.5% to 3%, as planned, to combat inflation, despite some investors' calls to delay the hike due to banking sector turmoil. The ECB is expecting inflation to exceed its 2% target through 2025. Due to the fundamental data, the Euro gained positively against the US Dollar, Pound, and Swiss Francs. The technical outlook, however, would determine our reaction to this situation.



EURUSD has made an initial reaction to the drop-base-rally demand zone. At this juncture, we also see how the demand zone aligns perfectly with the 100-Day Moving Average, the trendline support, and the 88% Fibonacci retracement area. The sentiment is clearly, largely bullish.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.08700

Invalidation: 1.04850



Similar to what we had on EURUSD, we see here how EURGBP also reacted initially away from the demand zone. However, in the case of the EURGBP, we see the MAs arrayed in a bullish pattern. Based on the confluence of the trendline support, the 200-Day moving average, the MA array, the 88% of the Fibonacci retracement tool, and finally, the demand zone, I will keep my sentiments bullish on EURGBP.

Analysts’ Expectations: 

Direction: Bullish

Target: 0.90560

Invalidation: 0.86930



EURJPY recently broke out of a wedge pattern, after which the price retreated into the demand zone responsible for that break of structure. It is important to note that because the demand zone aligns perfectly with the 76% Fibonacci level and the deop-base-rally demand zone, it is only logical to conclude in favor of a bullish outcome.

Analysts’ Expectations: 

Direction: Bullish

Target: 147.30

Invalidation: 137.30



EURNZD is my favorite setup as far as this piece goes for very obvious reasons. The daily timeframe shows the price currently trading within a channel, with the current price action heading toward the trendline support of the channel. The exciting aspect of this setup is that the trendline support has other confluences from the drop-base-rally demand zone, the MA array, the 100-Day MA, and secondary trendline support.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.72940

Invalidation: 1.68090


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