EURUSD: Short term materials continue to rebound

Fundamental analysis:

A number of European Central Bank policymakers said on Wednesday that they may need to raise interest rates by 75 basis points at the October meeting, and raise interest rates again in December to a level that will no longer stimulate the economy. The European Central Bank has raised interest rates by 125 basis points in the past two meetings, which is the fastest rate of policy tightening ever. However, it may be several months before inflation reaches its peak, which indicates that the European Central Bank, which is far behind most major central banks, still needs to further tighten its policies.

EURUSD daily chart

Technical analysis:

From the daily chart, we can see that the short-term rapid rebound is pulling up. MACD operates under the 0 axis but the volume can shrink slightly under the 0 axis. RSI shows signs of stopping the decline and rebounding. It is expected that the short-term exchange rate will rebound further.  

Empty turning point: 0.9950

Pressing position: 1.0150 1.0400

Support position: 0.9750 0.9550

Trading strategy: bearish below 0.9950, target 0.9750, 0.9550

Alternative strategy: bullish above 0.9950, target 1.0150, 1.0400