FX.co ★ Technical Analysis of EUR/USD for January 22, 2015

EUR/USD

Impact on EURO

Today, the focus has shifted to major economic events such as the ECB press conference and Spanish data. The ECB is expected to initiate its QE program at today's meeting. Two euro area central bank's officials said the ECB has recommended asset purchases of 50 billion euros a month until December 2016. On the other hand, Spanish unemployment rate is the other report affecting today's trading session. We are expecting a minor down tick in the unemployment data.

Impact on USD

The US building permits fell in December. The US commerce department said that the building permits decreased to 1032 thousand in December 2014 from 1052 thousand in November 2014. The other data, housing starts, rose 4.4% in December. The housing starts rose to a rate of 728,000 hitting the highest level since March 2008. Today, the focus has shifted to unemployment claims.

Technical view:

The pair has been making a minor base around 1.1540. It has been consolidating between 1.1540 and 1.1650. The pair is facing strong resistance between 1.17 and 1.1720. When a daily close is at 12ema and 1.1720, we can expect 1.1790 and 1.1870. From an intraday view, the resistance exists between 1.1640 , 1.1650, and 1.1690. The intraweek resistance exists at 1.1870 20Dsma. Until the pair closes above 1.1860 on a daily basis, the trading pattern will be framed between 1.1530 and 1.1860. We recommend selling below the 1.1530 levels.

Support: 1.1590, 1.1530, 1.1460

Resistance :1.1640, 1.1690, 1.1870