News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • UK PM Johnson to visit Scotland to make impassioned plea for Scotland to reject narrow separatism - The Sun $GBP
  • 🇺🇸 Chicago Fed National Activity Index (DEC) Actual: 0.52 Previous: 0.27 https://www.dailyfx.com/economic-calendar#2021-01-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 69.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IcGOFR0QfL
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/LTWADdQYbL
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.40% 🇦🇺AUD: 0.16% 🇨🇦CAD: 0.10% 🇯🇵JPY: 0.02% 🇨🇭CHF: -0.16% 🇪🇺EUR: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Lipxi7E6zE
  • Heads Up:🇺🇸 Chicago Fed National Activity Index (DEC) due at 13:30 GMT (15min) Previous: 0.27 https://www.dailyfx.com/economic-calendar#2021-01-25
  • A bout of strength this morning has driven #Bitcoin back above $34,000, its highest level since last Thursday. $BTC https://t.co/MtTFLxJXjZ
  • 🇲🇽 Economic Activity YoY (NOV) Actual: -3.9% Expected: -4.5% Previous: -5.3% https://www.dailyfx.com/economic-calendar#2021-01-25
  • US Corporate Earnings (Jan 25-29) Ticker (Earnings Implied move) Jan 26th - $JNJ (2.4%) - $AXP (4.3%) - $VZ (2.1%) - $MSFT (3.5%) Jan 27th - $T (3.6%) - $BA (2.9%) - $FB (6.1%) - $TSLA (6%) - AAPL (4.7%) Jan 28th - $MCD (3%) - $MA (3.6%) - $V (2.8%) Jan 29th - $CAT (4%) https://t.co/4Hir4UHXdY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in GBP/JPY are at opposite extremes with 67.50%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KuDL7vTltw
EUR/USD Rally Eyes Near-term Resistance Ahead of ECB

EUR/USD Rally Eyes Near-term Resistance Ahead of ECB

Michael Boutros, Strategist

Talking Points

  • EUR/USD rally eyeing confluence resistance ahead of ECB
  • Updated targets & invalidation levels
  • Click Here to be added to Michael’s email distribution list.

EUR/USD 120min

EURUSD 120min Chart

Technical Outlook: EURUSD has been trading within the confines of this ascending pitchfork formation extending off the December / January lows with the rally continuing to hold below the 50-line. Heading into tomorrow’s European Central Bank rate decision (ECB) the advance is at risk near-term below confluence resistance at 1.0741(100% extension) with the broader focus weighted to the topside while within this ascending formation.

Interim support rests with the median-line backed by 1.0630 and more significant confluence support at 1.0575(we’ll want to adjust this retracement in the event price makes a new high). A breach above resistance targets subsequent topside objectives at the March swing low (1.0822) & the 2016 open at 1.0872.

After extending the QE deadline in December, the central bank is widely expected to maintain current policy at the first 2017 interest rate decision. Keep in mind, the depreciation in the Euro exchange rate accompanied by signs of stronger price growth may force the ECB to soften its dovish tone and could further support the near-term recovery in EUR/USD.

EUR/USD Rally Eyes Near-term Resistance Ahead of ECB
  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are short EUR/USD- the ratio stands at -1.42 (41% of traders are long)- weak bullish reading
  • Long positions are 8.4% higher than yesterday but 20.6% below levels seen last week
  • Short positions are 5.4% lower than yesterday but 27.6% above levels seen last week
  • Open interest remains stable at 6.4% above its monthly average.
  • The current dynamic of waning short exposure leaves the immediate rally vulnerable below near-term resistance but the broader shift in sentiment keeps the focus higher. Look for a continued build in short positioning in the coming days to fuel the topside bias.

Relevant Data Releases

EUR/USD Rally Eyes Near-term Resistance Ahead of ECB

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

FollowMichael on Twitter @MBForex or contact him at mboutros@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES