New Support Level For EUR/USD at $1.0680: Is it a good buying opportunity?

January 4, 2023

EUR/USD was hovering around 1.0700 level on the first trading day of the year. The currency pair hasn’t done that bad despite hawkish comments from Christine Lagarde. However, the ECB MD Christine Lagarde clearly stated on December 31st that the bloc’s central bank should do whatever it takes to prevent inflation from arising due to rapid wage growth.

Right after her comments, a statement from Germany’s Finance Minister also appeared in the media, making things harder for the EUR/USD bulls, as he expected the inflation in the country to fall to 7% in 2023.

EUR/USD has been trading sideways since yesterday but staying above the 1.0580 level to retain the bullish trend, which is supported by Stochastic movement at oversold zones. If the pair breaks the 1.0580 level, then it will test the most significant support level at 1.0515 before making any positive move.

Author Seth