Important events today:

U.S. Bank Holiday.

In the absence of U.S. investors today should expect a continuation of the technical correction, which began on Friday. This currency pair is aimed to test last week’s high, which is located at 1.0803. ECB officials claim that the regulator will have to raise rates by at least 0.5% at spring meetings since the inflationary threat has not disappeared. The rate of industrial inflation in Germany was 17.8% in January – energy is getting cheaper while everything else is getting more expensive.

Overall, we can conclude that producer costs have not yet been fully passed on to consumers and this process will gain momentum this year, which will not allow inflation to fall as much as monetary authorities want it to. The ECB will be forced to raise interest rates more aggressively in the coming months than the Fed, which will have a positive effect on the value of the European currency. Since March the European regulator will start to reduce its balance sheet more actively, which will give EURUSD additional support.

Recommendations: Buy 1.0669/1.0630 and TP 1.0803.