EUR/USD attempts to recapture 1.0200

The EUR/USD pair’s price has recovery signs and is likely to recapture 1.0200 on ECB’s rate hike expectations. The US Dollar Index made a confident pullback after sensing lower selling pressure around 106.40.

Political developments in Italy and renewed uncertainty over energy supplies, including from Nord Stream1, have impacted the overall market sentiment.

The pair’s price shifted into a correction mode after failing to surpass Tuesday’s high at 1.0269 on Wednesday. Some factors such as the blockades around a fresh three-week high activated selling pressure and dragged the asset to near 1.0156. The pair is scaling higher with pure momentum. The pair has also displayed signs of rebound and is expected to extend its recovery above 1.0200.