At yesterday’s meeting, the ECB decided to leave interest rates and forward guidance unchanged. Even though Draghi tried to calm strong EUR, the EUR moved above 1.2500 handle for the first time since December 2014.
- The Governing Council confirmed that the net asset purchases, at the new monthly pace of €30 billion, are intended to run until the end of September 2018, or beyond, if necessary.
- The Governing Council also said, stand ready to increase the asset purchase programme (APP) in terms of size and/or duration.
The major currently trading at 1.2430 has made a Friday Asia session high at 1.2433 and hit lows at 1.2369.
At higher time frames, the 200MA (monthly) seem at 1.2530, yesterday’s high was 1.2537. We still believe the upside risk to the EURUSD remains in play this year.
For intraday, trend cast on US economic data. We have US 1st estimate of Q4 due today.
Resistance seems at 1.2460 and 1.2500. Support finds at 1.2360 and 1.2320/1.2300.
Ahead of next week’s FOMC meeting (Jan 31)range remains between 1.2700-1.2160.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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