Technical Analysis：EURUSD

The euro registered the largest daily decline in half a year

On Monday, EURUSD decreased by 1.47%, the largest daily decline in half a year. Credit crisis in Switzerland triggered the decline in EURUSD.

Switzerland underwent credit crisis

Credit Suisse announced its annual report for the year of 2022 on Tuesday. The report shows internal controls have major flaws, and points out that clients capital outflow can’t been prevented. Saudi Arabia, the largest investor for Credit Suisse, said that it can’t provide any assistance to Swiss Bank Corporation.

The ECB is expected to increase the interest rate by 25 basis points

Euro-currency market changed its bet on the ECB’s interest rate hike amid banking chaos.

It is expected that the probability that the ECB will raise the interest rate by 25 basis points is 60%. Earlier, the probability that the ECB will increase the interest rate by 50 basis points was 90%.

Technically speaking, the market trend is bearish

the chart of the day

On the chart of the day, EURUSD declined sharply yesterday. The market trend is bearish in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, demonstrating that EURUSD will fall further. EURUSD will decline further if it breaks below the support at 1.048.

4-hour chart

On the 4-hour chart, EURUSD declined sharply. The market trend is bearish in the short term. In terms of technical indicators, MACD went downwards after death cross occurred at a high level, demonstrating that the market trend is bearish. Investors should focus on whether EURUSD will break through the resistance at 1.065. It will fall further if it is capped at the resistance at 1.065.

Key resistance: 1.065,1.070

Key support: 1.048,1.040

As Swiss credit crisis put pressure on the euro, there is a risk that EURUSD will fall further. Investors should focus on the ECB’s interest rate decision during the day.