EURUSD: The downlink is extremely smooth

Fundamental analysis:

The euro fell 2.61% against the dollar to 0.9751, hitting a new low of 0.9736 this week since October 28, 2002. The European Central Bank followed the example of the Federal Reserve. After raising interest rates by 75 basis points this month, although they agreed that further action was needed to control the record inflation, with the soaring energy costs leading Europe to recession, there were some differences on whether it was appropriate to raise interest rates in advance.

EURUSD daily chart

Technical analysis:

The daily chart shows that the short-term exchange rate drops sharply. MACD operates under the 0 axis and the volume can rapidly shrink under the 0 axis. 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