Thursday, January 24, 2019

EUR/USD - 24 January 2019

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Fundamental Highlights

The Euro continues to range between 1.1340 and 1.1410 as investors await today's ECB monetary policy statement. In the most recent weeks, most of the ECB's appearances led to a drop in the Single currency as the ECB continuously sounded dovish and regularly reaffirmed that growth in the Euro Zone is slowing. For today, traders will monitor whether this dovish rhetoric will remain in place or change. Keep note that if the ECB signaled that it will not raise rates in the next two years then the Single currency will experience an influx of selling pressure.

Technical Analysis

The Euro continues to range between the 1.1340 support and the 1.1410 resistance. However, the bias remains bearish given that prices are trading below all the three major moving averages. Adding to the bullish momentum, the pair has rejected the break above the 13-period moving average (blue) and 50-period moving averages (yellow) in the past 8 hours. The break below the 1.1340 support will pave the way for a drop towards 1.1310, while the break above the 1.1410 resistance will pave the way for a rise towards 1.1449.

Support: 1.1340 / 1.1310
Resistance: 1.1410 / 1.1449
 

Chart (H4)

EURUSD JAN24

 
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