Euro surges after ECB's Rehn comments

Euro continues to climb higher supported by another set of hawkish comments from ECB officials. Following Schnabel and Villeroy, today Rehn joined the hawkish choir. Policymaker said rates will still have to rise significantly and reach restrictive levels. Following Rehn comments EURUSD pair edged higher to $1.0770, getting back to seven-month highs.  Recently the pair broke above major resistance at 1.0740 and if buyers manage to uphold current momentum, next resistance at 1.0900 may be at risk. This level is marked with previous price reactions and 50.0% Fibonacci retracement of the downward wave launched in May 2021.

Euro is the best performing currency among majors on Wednesday. Source: xStation5