EURUSD: temporarily stop falling, or rebound

Fundamental analysis:

German Central Bank President and ECB Governing Board Nagel said on Monday that the ECB must continue to raise interest rates decisively, because the risk that inflation will remain above its 2% target level is high. At present, the inflation rate in the euro area has exceeded 9%, which is expected to be close to double digits later this year, and will remain above 2% by 2024. This is a very long period, increasing the risk that rapid price increases will become deep-rooted.

EURUSD daily chart

Technical analysis:

The daily chart shows that the short-term exchange rate starts to rebound after a sharp fall. The MACD runs under the 0 axis and the volume can rapidly expand under the 0 axis. The RSI continues to decline. It is expected that the short-term exchange rate will further decline after the rebound.  

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