EUR/USD[1] Price, Chart, and Analysis
- A break of 1.1300 round number support may lead to further losses.
- Commentary from Fed hawk James Bullard out shortly.
The supportive monetary policy background and the heightened tensions on the Ukraine border, where Russian troops continue to grow, have further boosted the value of the US dollar[2] at the start of the week. The US dollar basket (DXY) is in positive territory for the fourth day in a row and at highs seen nearly two weeks ago as the rates market continues to price in up to seven 0.25% interest rate hikes in the US this year. The latest leg higher in the greenback came in a speech by Fed voter James Bullard after the latest inflation report who said that he would like to see 100bps of rate hikes by July 1 and suggested a 50bp hike is not off the table. Mr. Bullard speaks at 13:30 GMT today and it will be worth seeing if he doubles down on these comments or if he rows back on his previous hawkishness.
US Dollar Basket (DXY) Daily Price Chart – February 14, 2022
The daily EUR[3]/USD[4] chart shows the pair sitting on 1.1300 and looking to drift lower. While this round number is not in itself a high importance technical level, it does sit in the middle of a recent range of highs and lows. If the pair look to move lower, these old prints should act as a buffer on the way down.
Psychological Levels and Round Numbers in Forex Trading[5]
A confirmed break below 1.1300 opens the way to the 1.1220/40 area of prior low prints before sub-1.1200 levels come into play. Traders should note that volatility levels (ATR)
