As Philip Lane, chief economist of the European Central Financial institution, mentioned final Friday, the navy battle in Ukraine may scale back Eurozone GDP by 0.3%-0.4%. Within the worst-case state of affairs, GDP will shrink by virtually 1%. Additionally, in his opinion, a big enhance within the inflation forecast for 2022 is feasible.
EUR/USD could obtain assist if the Fed, towards the background of present occasions, will increase the speed extra slowly than is at present anticipated out there. On the similar time, the primary enhance within the ECB rate of interest is no longer anticipated sooner than 2023, whereas December of this yr was beforehand scheduled. And far of the dynamics of the euro will even be conditioned by details about the disaster in Ukraine.
Thus, an extra decline in EUR/USD is almost definitely, and in case of a breakthrough of the native assist stage of 1.1000, the decrease line of the descending channel on the weekly EUR/USD chart and the 1.0900 mark turns into the goal.
Help ranges: 1.1050, 1.1000, 1.0900, 1.0700
Resistance ranges: 1.1135, 1.1235, 1.1305, 1.1400, 1.1470, 1.1525, 1.1575
see additionally -> TRADING RECOMMENDATIONS
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