May 23, 2022 15:29 GMT
- Continued focus on Lagarde's pre-commitment on rates is underpinning the single currency on Monday, with the most recent Bloomberg exclusive piece potentially exacerbating the supportive price action for the Euro.
- With stocks firming in most recent trade, the greenback remains under pressure and EURUSD has made a fresh high print at 1.0691.
- Additional ongoing comments from ECB’s Villeroy: * EXCHANGE RATES MATTER DUE TO IMPORTED INFLATION (BBG)
- Following EURUSD clearing the 20-day EMA at 1.0570 overnight, technical conditions had suggested scope for a stronger short-term recovery which has manifested following a print above key resistance at 1.0642, the May 5 high.
- The current bull cycle started at 1.0350, May 13 low and from the base of a bear channel, drawn from the Feb 10 high. The channel top intersects at 1.0857 and is a potential short-term objective. Initial support is at 1.0533, May 20 low.