FxNews – Our recent technical analysis of the USDCZK currency pair proved accurate. The pair experienced a sharp decline from the 22.7 resistance level.
USDCZK Analysis – Navigating the Bearish Trend
The selling pressure has eased near the 50% Fibonacci support level. Notably, a long-wick bullish candlestick has emerged on the 4-hour chart. This suggests a potential trend reversal or a consolidation phase. As a result, USDCZK is testing the 38.2% support level.
The overall trend appears bearish. Analysts at FxNews recommend waiting for the pair to drop below the 50% support level before entering a new trade. However, if the USDCZK price rises to 23.6%, this could also offer an opportunity to initiate a new selling order.
ECB Holds Firm on Interest Rates
Bloomberg—The European Central Bank (ECB) is set to hold interest rates at their highest levels for the second time in many years. This decision, expected at Thursday’s meeting, aims to combat high inflation despite slowing economic growth. The main refinancing operations rate is likely to stay at 4.5%, a 22-year peak, while the deposit facility rate is expected to remain at a historic 4%.
All eyes are on ECB President Lagarde’s upcoming speech, focusing on her views about the rapid drop in inflation and how it fits with the bank’s rate forecasts. Investors are also keenly watching the ECB’s position on potential future rate cuts, especially after recent hints from some ECB officials suggested the possibility of reducing rates by over 100 basis points in the next year.
