The EURUSD moved higher after the ECB said they still have to raise rates significantly further because inflation remains far to high and is expected to remain above targets.
The price moved from .1.0619 to a high of 1.06676. The price is back down to 1.0648 as Lagarde starts her press conference.
Looking at the daily chart, the swing area between 1.0594 and 1.06402 remains intact. That area is defined in April May and June 2022 when the price moved above and below that area as the price action consolidated over those months. On June 28, the price stalled in that area and started its run to the downside that saw the pair move to the low for the year at 0.9535 before starting its rebound on September 28.
The rally since September saw the price reach the 50% of the 2022 range. In December, the price consolidated above and below that 50% of the 2022 trading range of 1.05155, but moved away from that midpoint after the weaker than expected US CPI data this week on Wednesday, and moved above the aforementioned swing area in the process. Yesterday, the low price bottom within that swing area, and today, the price is also bottoming within that area. Stay above that yellow area, keeps the buyers more in control.
On the topside, the 61.8% of the 2022 range comes in at 1.07468. That would be the next upside target. Above that is a swing area (that stalled the rallies back in May and June) that come in at 1.0773 to 1.0805.
The EURUSD is trading at 1.0667 at the start of the Q&A.