The EUR/USD continued to consolidate at higher levels, after pushing higher late last week in the wake of the Fed meeting. The exchange rate initially moved higher following hawkish comments from ECB officials. The divergent policy seems to be ending as ECB members are calling for a rate increase. Resistance on the EURUSD is seen near last week’s highs at 1.0782. Support on the Euro to US dollar chart is seen near the 10-day moving average at 1.0660. Momentum remains positive with the MACD (moving average convergence divergence) index printing in the black with an upward sloping trajectory.
The ECB is Turning Hawkish
ECB’s Visco also hinted at earlier rate hike. The Italian central bank head suggested that the current guidance, which still says that rates are expected to remain at current or lower levels for an extended period to the end of the asset purchase schedule could be tweaked and the period between the end of QE and a rate hike shortened.