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03.02.202309:21 Forex Analysis & Reviews: EUR/USD: demand falls despite latest ECB rate hike

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EUR/USD, H4 chart.

The ECB announced a 0.5% increase on its interest rate and explicitly said that there could be a similar one in March, depending on the economic data that will come out.

The hike is obviously driven by the need to reduce inflation, which recently peaked at 10%.

The decision is a very strong signal for bullish traders, however, euro has been declining since yesterday, and the amount could not even be considered a brief correction.

Talks have emerged that euro has reached the top, especially since its normal range value is 1.0500 or 1.0600-1.1000.

But that does not mean that euro could not try to rise to 1.1100. Higher prices than that are unlikely.

And of course, short positions could be set based on the indicated highs.

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