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
Bullish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • IMF World Economic Outlook updates: - US 2021 GDP estimate raised to 5.1% from 3.1% - Euro-area growth estimate cut - Great deal of uncertainty remains around forecasts - Realization of potential downside risks could cause a tightening in financial conditions $EUR $USD
  • IMF World Economic Outlook updates: - Lifts 2021 global outlook on stimulus and vaccines boost - Says global recession shallower than previously expected - Raises 2021 global growth estimates from 5.2% to 5.5% $EEM $USD $URTH
  • 🇭🇺 Deposit Interest Rate (JAN) Actual: -0.05% Expected: -0.05% Previous: -0.05% https://www.dailyfx.com/economic-calendar#2021-01-26
  • 🇭🇺 Interest Rate Decision Actual: 0.6% Expected: 0.6% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-01-26
  • Heads Up:🇺🇸 IMF World Economic Outlook due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-26
  • Heads Up:🇭🇺 Deposit Interest Rate (JAN) due at 13:00 GMT (15min) Expected: -0.05% Previous: -0.05% https://www.dailyfx.com/economic-calendar#2021-01-26
  • Heads Up:🇭🇺 Interest Rate Decision due at 13:00 GMT (15min) Expected: 0.6% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-01-26
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/Xo7WQ5b8l1
  • US Dollar slips with high beta FX hovering at session highs amid results from Regeneron's antibody drug cocktail which prevented 100% of symptomatic infections and cut down asymptomatic infections by a half in interim study
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/5fpiYso1Cd
EUR/USD Levels to Watch as Rebound from 2020 Low Unravels

EUR/USD Levels to Watch as Rebound from 2020 Low Unravels

David Song, Strategist

EUR/USD Rate Talking Points

EUR/USD continues to give back the advance from the yearly low (1.0636) as there appears to be a rift within the European Central Bank (ECB), and the exchange rate may exhibit a more bearish behavior over the coming days as it extends the series of lower highs and lows from earlier this week.

EUR/USD Levels to Watch as Rebound from 2020 Low Unravels

EUR/USD remains under pressure as ECB board member Yannis Stournaras insist that “now is the time for common action and solidarity,” with the official going onto say that “common issuance of debt is common action against the common enemyduring an interview with Bloomberg News.

The comments suggest there’s a split within ECB as “there are proposals to use the European Stability Mechanism or the European Investment Bank,” and the Governing Council may merely buy time at its next meeting on April 30 as the central bank carries out the Pandemic Emergency Purchase Programme (PEPP).

It remains to be seen if the ECB will implement more non-standard measures to combat the weakening outlook for growth as the central bank remains reluctant to remains reluctant to push the main refinance rate, the benchmark for borrowing costs, into negative territory, but the Governing Council may continue to push monetary policy into uncharted territory as Vice President Luis de Guindos warns of a looming recession.

In turn, the ECB may continue to endorse a dovish forward guidance as President Christine Lagarde emphasizes that the Governing Council is “fully prepared to increase the size of our asset purchase programmes and adjust their composition, by as much as necessary and for as long as needed,” and the current environment may keep EUR/USD under pressure as the US Dollar benefits from the flight to safety.

With that said, the recent rebound in EUR/USD may continue to unravel over the coming days as the exchange rate extends the series of lower highs and lows from earlier this week.

Forex for Beginners
Forex for Beginners
Recommended by David Song
Forex for Beginners
Get My Guide

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

EUR/USD Rate Daily Chart

Image of EUR/USD rate daily chart

Source: Trading View

  • Keep in mind, the monthly opening range has been a key dynamic for EUR/USD in the fourth quarter of 2019 as the exchange rate carved a major low on October 1, with the high for November occurring during the first full week of the month, while the low for December happened on the first day of the month.
  • The opening range for 2020 showed a similar scenario as EUR/USD marked the high of the month on January 2, with the exchange rate carving the February high during the first trading day of the month.
  • However, the opening range for March has become less relevant amid the pickup in volatility, with the pullback from the yearly high (1.1495) producing a break of the February low (1.0778) as the exchange rate slipped to a fresh 2020 low (1.0636).
  • Nevertheless, the recent rebound in EUR/USD appears to have stalled amid the string of failed attempt to close above the 1.1140 (78.6% expansion) region, and the exchange rate may exhibit a bearish behavior over the coming days as it extends the series of lower highs and lows from earlier this week.
  • A close below the Fibonacci overlap around 1.0950 (100% expansion) to 1.0980 (78.6% retracement) bring the 1.0830 (78.6% expansion) to 1.0860 (23.6% retracement) region on the radar, with the next area of interest coming around 1.0780 (100% expansion) followed by the yearly low (1.0636).
Traits of Successful Traders
Traits of Successful Traders
Recommended by David Song
Traits of Successful Traders
Get My Guide

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

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

DISCLOSURES