ECB Holzman: I belong to those that think we should be ready to hike again if needed

<ul><li>I definitely belong to those that think we should be very careful, that we should stand ready to hike again if needed.</li><li>Not really worried about the growth outlook because despite rate hikes we still have stagflation,</li><li>It could be much, much worse and we are in pretty good shape there</li><li>Don't expect any reduction in rates soon, eventually it will happen but for the time being I don't see it</li><li>We need to stay vigilant</li></ul><p>Cautionary tone on rates from ECB's Holtzmann.</p><p>The EURUSD backed off in the US session but held above the close from Friday near 1.0726. The low just reached 1.07253, and is back up at 1.0747 currently. </p><p>On the topside, the 38.2% retracement of the move down from the July 18 high comes in at 1.07637. That is the next upside target (up to 1.07816). Above that, and the 100 and 200-day moving averages are converged at 1.0804. Needless to say, having the two longer-term MAs converged increases that levels importance going forward. </p>

This article was written by Greg Michalowski at www.forexlive.com.