H4 chart of EUR/USD
Weekly chart of EUR/USD
The euro has been under pressure due to geopolitical developments in Eastern Europe.
In addition, inflation in the eurozone soared with Germany's rate accelerating above 7% y/y).
In this light, the ECB will have no other choice but to initiate a rate hike. It could disrupt the ongoing recovery of the EU economy, which is getting back to normal at a slower pace than its American counterpart. The ECB's reluctance to act has also been weighing on the euro.
According to the chart, EUR has reached long-term highs in the 1.0600 - 1.0700 range.
As for geopolitical developments in Eastern Europe, the conflict is highly unlikely to expand to other territories.
Europe is gradually getting over the first shocks of anti-Russian sanctions.
Whether the ECB whats it or not, it will eventually have to raise interest rates.
At the moment, you may look for buy entry points on EUR/USD.
