EURUSD: The rally will continue

Fundamental analysis:

Franck Dixmier, global chief investment officer for fixed income at Allianz Global Investments, said the ECB's position was becoming more uncomfortable and headwinds were making its task more difficult. To fulfill its mandate, the ECB must raise interest rates as much as possible to bring inflation to a level consistent with its price stability goal, but government support programs for purchasing power and demand are pushing prices higher. Nevertheless, the ECB's stance should remain unchanged that it must continue to act quickly and strongly, Dixmier said. The European Central Bank is expected to announce a 75 basis point rate rise on Thursday, and such a large increase should not come as a surprise

Daily EURUSD chart

Technical analysis:

The daily chart shows that the short-term exchange rate continues to rebound upward, MACD runs under axis 0 but the volume can continue to shrink slightly under axis 0, RSI stops falling and slowly rises, it is expected that the short-term exchange rate will continue to rebound upward, and the medium-term does not rule out further downward possibility after correction.

Long-short turning point: 0.9950

Suppression position: 1.0150 1.0400

Support: 0.9750 0.9550

Trading strategy: Bearish below 0.9950, target 0.9750, 0.9550

Alternative: Bullish above 0.9950, targets 1.0150, 1.0400