The euro fell slightly on Tuesday and tested the 1.14 level. However, it turned around and showed signs of life. Because of this, the market is likely to continue to see a lot of noisy behavior; The euro recently picked up slightly because it sounded pretty awkward after the ECB meeting last week. However, the proposal of several central bank governors was also voiced on Tuesday; That two interest rate hikes in the markets are estimated; As exaggerated as they sounded pretty convincing. This is what prompted the euro to reach 1.14 initially.
At this point, if the euro falls below the 1.14 level, then it is likely that the currency may continue to fall towards the 50-day EMA. However, most experts predict a slight decline in the euro for the time being. The market may likely be much lower. Then, a figure of 1.12 may also be recorded. Consequently, the next few days are noteworthy. It should be noted, however, that the CPI numbers will release on Thursday, which will directly impact what happens to the US dollar.
It is worth noting that this market is prone to back and forth movement. The question now is whether any larger consolidation area is being formed. On the other hand, if the level above 1.15 is broken, then it is likely that the next resistance will be to climb to the level of 1.16. For some time, there was a thick resistance barrier between 1.15 and 1.16. The following two days are expected to be noisy for the euro. Most experts suggest a short-term reversal.
Euro Expectations
It is worth considering that the euro and the dollar have seen a noticeable increase in the last few days. Despite the current minor setback, economists say it will only be temporary, and the euro will soon start following a positive wave again.
