EURUSD: Bears down

EUR/USD remained volatile around 1.10029, and the market expects the European Central Bank to raise interest rates a few more times. It seems only a matter of time before the weakness spreads to the service sector and a more meaningful decline in core inflation. There is little pressure on spreads in the eurozone periphery and the yield curve may continue to invert, but as in the US, credit in Europe could offer the potential for favorable returns over the course of 2023.

EURUSD—4-hour K-line chart shows:

Looking at the 4-hour chart: the short-term momentum remains oscillating and moving downward, the short-term decline may continue, the market as a whole is in a short-term downward trend, the MACD indicator is finishing near the 0 axis, and the RSI indicator is hovering weakly below the 50 balance line;

Resistance levels: 1.10216 1.10333

Support levels: 1.09914 1.09814

Trading strategy: bearish below 1.10092, target 1.09914 1.09814

Alternative strategy: bullish above 1.10092, target 1.10216 1.10333