Euro is the worst performing G10 currency today as concerns over the banking sector renewed. Credit Suisse stock plunged to new record low after the lender's top shareholder ruled out further injections if another call for additional liquidity was needed. Tomorrow traders will focus on the ECB policy statement, with policymakers expected to raise interest rates by at least 25 bps, with a 50% chance of a larger half-point move.
As sentiment towards risky currencies deteriorates EURUSD pair fell over 1% on Wednesday and is testing a crucial support zone around 1.0600, which coincides with 38.2% Fibonacci retracement of downward wave started in May 2021 and upward trendline. Should break lower occur, sell-off may deepen towards local support at 1.0530, where recent lows can be found. Should break lower occur, downward move may extend towards the lower limit of the broad 1:1 structure at 1.0280, which coincides with 200 SMA (red line).
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
EURUSD, D1 interval. Source: xStation5
EUR and CHF took the biggest hit on Wednesday. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
