EURUSD: high down

Fundamental analysis:

The euro remained volatile around 1.04897 against the U.S. dollar. Negeer, member of the European Central Bank’s Governing Council, said that exiting the asset purchase program is the best option for quantitative tightening; the market has enough flexibility to deal with quantitative tightening, which should start in the first quarter of 2023 . Ouyang Xing's increasingly hawkish attitude towards monetary tightening is also one of the driving forces behind the recent rise of the euro.

EURUSD—4-hour K-line chart shows:

Brief technical analysis:

Looking at the 4-hour chart: the high-level short-term dynamics fluctuated and retreated downward, and the short-term decline began to wait for an opportunity to enter the market. The market’s bearish sentiment emerged, the MACD indicator was in the bullish area, and the RSI indicator was hovering weakly near the 50 balance line;

Long-short turning point: 1.04992

Suppression: 1.05235, 1.05471

Support: 1.04659, 1.04423

Trading strategy: bearish below 1.04992, target 1.04659, 1.04423

Alternative strategy: Bullish above 1.04992, target 1.05235, 1.05471