ECB's Schnabel: Further Rate Hikes May Be Needed for Inflation Target

Hawkish comments from an ECB member could provide support for the euro. Technically, the RSI at 54 is in neutral territory, and the price is above the SMA20, indicating potential for a short-term upward move. Although the MACD remains below zero, it is approaching the signal line, suggesting that momentum may turn positive, albeit weakly. However, with the price trading near the SMA50 and no volume data available, there is a risk that the upside may remain limited.

ECB member Schnabel's signal of a potential interest rate hike could increase tightening concerns in the markets. The DAX index recorded a 0.66% decline over 24 hours, while the MACD remains in negative territory and below the signal line. Although the RSI is at 52.7, indicating a neutral zone, the price staying below the 50-day moving average (24,918) suggests weakness. In the short term, selling pressure may persist due to rate hike expectations, but the possibility of finding support near the 20-day moving average (24,784) should not be overlooked.

ECB member Schnabel's signal of a potential interest rate hike could increase tightening concerns in the markets. The CAC index is currently at 8,402, trading near its 50-day moving average (8,402.57), a critical resistance zone where selling pressure may emerge. While the RSI at 57 remains in neutral territory, the MACD line continues to stay below the signal line, indicating weak momentum. A short-term pullback toward the 8,350-8,370 support zone is highly likely due to the news impact. However, as the rate hike expectation has not yet been priced in, the decline is expected to remain limited.