The EURUSD pair is testing the 1.24 level during the London session on Wednesday and was 0.25% stronger on the day, with further volatility expected throughout the day.
On Tuesday, the ECB governing council member Nowotny said he would like to see a rise in the deposit rate from -0.4% to -0.2% soon, which should be followed by another hike to 0.0%. He expects the main refinancing rate to rise as well. These comments sent the single currency higher broadly.
The US calendar will contain important macro events today as well, including CPI indices and the FOMC minutes. The market anticipates another rise in inflation to 2.4% year-on-year.
The EURUSD pair managed to get back above the bullish trend line, which switched the immediate trend back to bullish. It is now facing a stronger resistance of 1.24 and if broken, the euro could accelerate toward the 1.25 mark.
On the other hand, the support is now seen at 1.2340 and if not held, bears might push the single currency back to the 1.23 mark. In all cases we strongly recommend to have rigorous money and risk management.
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