Forex Analysis & Reviews: Forecast for EUR/USD on March 22, 2022

Last night, Federal Reserve Chairman Jerome Powell spoke and said that if inflation rises, the rate at the May meeting could be increased by 0.50 points. Investors rated this as a belated recognition, but still began to buy dollars (the dollar index is 0.24%), dump government bonds (yield on 5-year securities increased from 2.14% to 2.32%) and leave the stock market (Dow Jones -0.58%, S&P 500 -0.04%). The market probability of a double rate hike at the next meeting has increased to 60 percent.

It is very likely that the euro changed its mind for the second time to storm the resistance of 1.1121 and reach the target of 1.1177, not to mention the closing of the double gap around the level of 1.1280. But we still need to be convinced of this intention.

The Marlin Oscillator is falling in the negative zone on the H4 chart, and in order to fully confirm the price's intention to decrease, the MACD line should be overcome, near the mark of 1.0944. In this case, the first bearish target at 1.0820 will open.

Analysis are provided by InstaForex