At the time of publication of this article, EUR/USD is traded near 1.0970 mark, in the zone of almost 2-year lows, below the key resistance levels 1.1570 (EMA200 on the weekly chart), 1.1500 (EMA200 on the daily chart). Today there is no important news in the economic calendar. In view of this, the corrective weakening of the dollar and the growth of EUR/USD may continue.
The focus of investors this week is the ECB meeting, which will end on Thursday with the publication (at 12:45 GMT) of the decision on interest rates. Economists expect annual inflation in the Eurozone to peak at 6.2% in April (against 5.8% in February and 5.1% in January). And earlier, the momentum for the recovery of the Eurozone economy was weaker than in the US. Consumer spending and investment in the Eurozone are at levels below pre-pandemic levels, while US numbers have returned to them, according to the ECB. Most likely, the ECB will leave interest rates unchanged this year, despite the growing inflationary pressure, and this creates room for the euro to fall. Thus, EUR/USD has been trading down almost 3% since the start of the military operation in Ukraine, and yesterday the pair fell to 1.0805, corresponding to the lows of almost 2 years ago.
Tomorrow at 13:30 (GMT) the ECB press conference will begin and will be of major interest to market participants.Corrective growth will most likely be limited by the resistance level 1.1031. If the decline resumes, the targets will be the local support levels 1.0900 (lower line of the descending channel on the weekly chart), 1.0830 (local lows), 1.0700 (March 2000 lows).
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