Breaking news:
All you need in Forex
story by: Oluranti Owolewa
Live January ECB Meeting and EURUSD technical analysis
19/01/2017
Live January ECB Meeting and EURUSD technical analysis

ECB Mario Draghi in focus: EURUSD technical analysis. The US dollar ran into a key barrier around 115.00 levels where sellers were patiently waiting in Asian and the early hours of European sessions today after posting an impressive rally after Fed Chief Janet Yellen speech yesterday.

19 January, AtoZForex – Mario Draghi in focus as ECB holds its monthly press conference. When the ECB council last met Draghi completely dismissed the idea of unwinding their Quantitative Easing program by tapering asset purchases. The ECB clearly did not want to jeopardize the fragile recovery by taking any steps that could reverse the uptrend in growth and inflation.

One month later, the economy has clearly improved with inflation and manufacturing activity on the rise, although core CPI remains at one-half the central bank’s 2% target. The weakness of the euro has gone a long way in supporting the economy and boosting inflation leading ECB member Villeroy to say that growth will be solid in 2017.

Live January ECB Meeting

It is not expected to change its monetary policy stance. However, traders will be watching carefully to see if the recent improvements in Eurozone data will prompt Mr. Draghi and company to begin discussing the prospect of tapering central bank’s QE program.

Any recognition of tapering would be viewed as euro positive by the market but Mr. Draghi may hold off in making any overt remarks for fears of driving EURUSD back above the 1.1000 level. The euro has found support several times near the 1.0400 figure and unless Mr. Draghi is unexpectedly dovish, that level should hold for the foreseeable future. Meanwhile, Mr. Draghi is also likely to remain neutral on the issue of tapering which could result in one of the more sedate press conference events in recent memory.

ECB Mario Draghi in focus: EURUSD technical analysis

ECB Mario Draghi in focus

EURUSD D CHART (click to zoom)

On the EURUSD technical outlook ahead of Mario Draghi’s press conference, 1.0850 is the value of the 100-day moving average. Also a key 50% Fibonacci retracement which makes it a confluence of resistance. A break of this said key confluence zone will invariably have EURUSD aim for the 1.1000 psychological level.

EURUSD Hourly Technical Outlook

ECB Mario Draghi in focus

EURUSD Hourly Chart (click to zoom) 

EURO drops as Draghi strikes dovish tone on inflation. The EURUSD dropped briefly after ECB Mario Draghi pressed some dovish buttons on inflation. Dropping from the top of the session’s  high of 1.0676 to the low of 1.0588 as can be seen on the hourly chart above.

Going forward, next support can be found around 1.0570s. Which is the value of the hourly rising trend line and 1.0530 in extension.

Think we missed something? Let us know in the comments section below and remember to share if you found our view to be helpful!

(97)

Share via Twitter Share via Facebook Share via LinkedIn Share via Google Plus

Subscribe to AtoZ Forex exclusive updates!