Our latest analysis on the 26 January EURUSD Technical Forecast, covers how comments from the ECB’s President, Mario Draghi affect the EURUSD pair. Get updated.
26 January, GKFX – Having posted a session low level of 1.2370, the EUR/USD pair caught some fresh bids and is currently placed in session tops, around mid-1.2400s.
• Overnight sharp USD recovery fizzles out.
• EUR supported by hawkish ECB outlook.
• Key US macro data eyed for fresh impetus.
The pair on Thursday reversed its post-ECB strong gains to levels beyond the key 1.2500 psychological mark and tumbled below the 1.2400 handle after the US President called for a stronger US Dollar.
A goodish USD rebound already seems to have lost upside momentum and helped the pair regain traction on Friday. The shared currency remained supported by the ECB President Mario Draghi’s comments, during the post-meeting press conference, on the region’s strong economic expansion.
Meanwhile, Draghi also commented on monitoring the recent exchange rate volatility, which could be a source of uncertainty for short-term price stability and saw very few chances of a rate hike this year.
Hence, it remains to be seen if bulls are able to maintain their dominant position or the up-move is once again sold into as traders now look forward to important US macro releases – advance GDP growth figures and durable goods orders, for fresh directional impetus.
In absence of any major market moving EZ economic data, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum on the last trading day of the week.
26 January EURUSD Technical Forecast
A strong follow-through buying interest has the potential to lift the pair back towards reclaiming the 1.2500 handle before eventually darting towards mid-1.2500s.
On the flip side, 1.2425 level, followed by the 1.2400 handle now seems to protect the immediate downside, which if broken might prompt some additional profit-taking slide towards 1.2360-50 support.
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