ECB's Stournaras: Avoid Overly Tight Monetary Policy

ECB member Stournaras stated that excessive tightening should be avoided, strengthening market expectations that the pace of interest rate hikes may slow. This could support the Euro in the short term. Technically, the RSI at 63.6 has not approached overbought territory, while the MACD remains positively above its signal line. The price is trading above both the 20-day and 50-day moving averages, indicating a continued uptrend. However, after a 0.36% gain in the last 24 hours, the possibility of short-term consolidation should not be ruled out.

A European Central Bank official's statement that excessive tightening should be avoided could create mild pressure on the euro and support an upward move in EURJPY. Technically, the RSI is in positive territory at 61 and the MACD is above its signal line, confirming a short-term bullish trend. The price is trading above the 20- and 50-day moving averages, indicating that buyers remain in control. However, I believe the upside may be limited and the 185.50 resistance level could be tested.

EURGBP is approaching oversold territory with an RSI of 34, while the price trades below both the 20-day and 50-day moving averages. The MACD line is below the signal line and in negative territory, indicating short-term weakness. Stournaras's comments that excessively tight monetary policy should be avoided may slightly support the Euro by reinforcing expectations that the ECB could be more cautious with rate hikes. However, the current technical weakness and bearish trend could limit any upside movement. Therefore, it is difficult to determine a clear direction in the short term, and the market may be expected to stabilize around current levels.

EURTRY technically maintains its upward trend. The RSI is in neutral territory at 58, while the MACD shows a positive outlook above its signal line. The price is trading above the 20- and 50-day moving averages. Dovish statements from the ECB could support the Euro in the short term. However, caution is advised due to high volatility and potential reversal risks.