Interestingly, European markets are showing positive momentum on Monday with no fear of the ECB tightening tone. German DAX40 is gaining support for the second day after sliding below 13,000, which also passes the 61.8% retracement level of the move from the March 2020 low to the November 2021 high. This level was also a significant resistance in the second half of 2020 and is now major support.
EURUSD is back above 1.05, cementing the rebound from the 'double bottom' near 1.0350, almost repeating the lows at the turn of 2016 and 2017. However, as long as EURUSD trades steadily below the 50-day average (now at 1.0625), it will be premature to talk about a trend reversal.
