Skip to Content
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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
EUR/USD Technical Analysis: Post-ECB Rally Stalls Near 1.12

EUR/USD Technical Analysis: Post-ECB Rally Stalls Near 1.12

Ilya Spivak,

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/USD Technical Strategy: Flat
  • Euro stalls near 1.12 figure vs. US Dollar following post-ECB surge
  • Looking for actionable short trade setup in line with long-term trend

The Euro has settled into digestion mode near the 1.12 figure against the US Dollar having soared to the highest level in a month last week. The move followed the ECB monetary policy announcement, where the central bank delivered an aggressive stimulus boost but hinted negative deposit rates had reached a floor.

Near-term support is at 1.1094, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 38.2% level at 1.0919. Alternatively, a push above the 14.6% Fib at 1.1202 paves the way for a challenge of the February 11 high at 1.1376.

Our 2016 fundamental outlook calls for continuation of the long-term EUR/USD down trend. However, current positioning does not offer an attractive trade setup and the available trading range is too narrow to justify initiating exposure from a risk/reward perspective. With that in mind, we will remain flat for now.

Are you following FXCM traders’ positioning on EUR/USD? Find out here !

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