The euro slipped after ECB policymakers cautioned about fast rate hikes. The vertical ascent is a sign of a short-squeeze against medium-term positions as the pair approaches the July high of 1.0480. Its breach would lift offers to another daily resistance at 1.0600. However, the RSI’s overbought situation combined with a mean reversion pressure could trigger a retracement. 1.0280 is the first support and its invalidation could give an excuse for profit-taking. Then 1.0160 would be a second level to expect follow-ups.
