Title: EUR/USD Price Analysis: Challenges bearish commitments at 100DMA ahead of ECB
October 27, 2022 01:29 AM ET
The EUR/USD pair is trading almost unchanged at around 1.0075 before the European opening. In anticipation of the important ECB rate hike decision and the pre-release of the US GDP for the third quarter, investors are taking a break and refraining from directional bets on the currency pair.
Expectations of a large rate hike by the ECB have supported the recent rise in the EUR/USD, while the US dollar index has sold off in the face of weak economic data from the world's largest economy on talk of a possible swing by the Federal Reserve towards a more dovish stance.
Looking ahead, "the main focus will be on the accompanying monetary policy statement and post-meeting press conference amid concerns about economic headwinds stemming from the ongoing Russia-Ukraine war. Earlier this month, ECB President Christine Lagarde described interest rate hikes as the best way to combat galloping inflation, "FXStreet Editor Haresh Menghani explains."
U.S. growth numbers are also being watched for fresh clues on the Fed's tightening outlook.
The declining 100-day moving average (DMA) at 1.0090 is the critical daily resistance ahead of the ECB decision
A positive rate hike by the ECB could give the bulls a firm break above this level and trigger a new uptrend towards 1.0200.
The 14-day relative strength index (RSI) has turned lower but remains well above the 50.00 level, giving bulls hope.