Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
16 Mar 2023

EUR/USD bulls and bears in a brawl between key support and resistance

  • EUR/USD holds in familiar territories after the ECB.
  • Markets are calmer after Credit Suisse said it would borrow up to $54 billion from the Swiss National Bank.
  • The bias is for a break of the horizontal support of 1.0480 to open prospects of a move to 1.0450.

EUR/USD is higher on the day but hardly making headway after the European Central Bank raised interest rates as planned despite market turmoil and the banking crisis. At the time of writing, EUR/USD is trading at 1.0595 and higher by 0.18% on the day. The pair has traveled between a low of 1.0551 and 1.0635.

The ECB announced a half-percentage point rate hike as promised to curb inflation as follows:

  • Main refi rate at 3.50% vs 3.00% prior.
  • Raises interest rate on marginal lending facility to 3.75% vs 3.25% prior.
  • Deposit facility to 3.00% vs 2.50% prior.

All in all, the Governing Council remains highly concerned about inflation, analysts at TD Securities explained, noting the first sentence of the release as being: "Inflation is projected to remain too high for too long". 

No LTROs were announced, but the statement shows a willingness to provide liquidity if needed. Moreover, there was no indication in the statement of future policy hikes. Treasury yields rose at the short end, while notes and bonds with maturities of 10 years or more fell after an initial volatile reaction by markets to the ECB decision.

Meanwhile, markets were broadly calmer on Thursday after Credit Suisse said it would borrow up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence. The bank's shares sank like a stone by 30% on Wednesday.

EUR/USD technical analysis

EUR/USD´s daily chart is meeting the daily support and is capped by daily resistance. While on the backside of the prior bullish trend and resisted below 1.0700, the bias is for a break of the horizontal support of 1.0480 to open prospects of a move to 1.0450 ahead of the 200 DMA.

The hourly chart has seen the price resisted below a 50% mean reversion after piercing the horizontal support. If the bears commit, then a break of the support will put the -272% Fibo in focus near 1.0450. 

Mar 16, 2023

ECB: Looking at two more 25bps hikes – Rabobank

On Thursday, the European Central Bank raised its key interest rates by 50bps as expected. Analysts at Rabobank see two more rate hikes of 25 bps ahea
Read more Previous
Mar 16, 2023

WTI climbs on risk-on impulse, and Saudi-Russia meeting eased fears

Western Texas Intermediate (WTI), the US crude oil benchmark, gains traction after dropping to a 15-month-low at around 65.72, sponsored by a risk-on
Read more Next