ECB signals rate hike as energy shock deepens Europe's inflationEUR/USDOANDA:EURUSDinkicho_exness Escalating geopolitical risks and surging energy costs are taking a direct toll on European economies, with soaring government debt and borrowing costs emerging as a critical concern. Rising inflation concerns are complicating the ECB's policy stance, with Nagel of Bundesbank signaling a possible rate hike on worsening medium-term inflation expectations. The ECB held rates at 2.15%, projecting CPI at 2.6% this year and as high as 6.3% in 1Q next year under an extreme scenario, raising the odds of an Apr hike. EURUSD briefly breached above the resistance at 1.1600 before retracing back below EMA21. The price remains below both bearish EMAs, indicating a potential for a continued downtrend. If EURUSD breaks below the support at 1.1500, the price may retreat further toward the next support at 1.1420. Conversely, if EURUSD breaks above both EMAs, the price may advance toward the following resistance at 1.1600.