During the early Asian session today, EUR/USD pair has quickly risen to get close to the important threshold of 0.9900. DXY has been under pressure because of Fed Daly’s pessimism over interest rates as she signaled the possibility of an economic downturn brought by rising interest rates.
While this is happening, investors are now waiting for the European Central Bank to announce its interest rate decision (ECB). ECB President Lagarde will choose to raise rates this time by a larger amount since rising prices are harming the Eurozone’s economy. A 75bps rate hike is highly likely.
On the hourly scale, 0.9900 seems to be a tough nut to crack for the euro bulls. The upside is likely to be limited near parity level at 1.0000 and could act as a turning point in the medium term.
Support is seen at 0.9810 and should this be broken, it can drag the pair towards its next support at 0.9750 to 0.9700.
