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Fundamental analysis

EURUSD Clings to Daily Gains Near 1.1430

GKFX | Jan. 30, 2019
EURUSD Clings to Daily Gains Near 1.1430

January 30, GKFX – The bid tone around the single currency remains well and sound so far this week, prompting EURUSD to advance for the fourth consecutive session to the mid-1.1400s.

EURUSD looks to FOMC event

Spot is up for yet another session today while the greenback is prolonging the sideline theme in the lower bound of the weekly range, always below the critical 96.00 the figure.

Alternating risk appetite trends combined with a renewed offered bias around the greenback appears to be sustaining the current squeeze higher in the pair, which is now facing the critical resistance area near 1.1450, where sits the 100-day SMA.

Moving forward, all eyes will be on the FOMC event during the European evening, where Chief Powell is expected to deliver a somewhat cautious (even dovish) message amidst the ongoing more patient and flexible stance from the Federal Reserve.

In the data space, German Business Climate tracked by GfK improved to 10.8 for the month of February, while Import Prices contracted 1.3% during December, more than initially expected.

What to look for around EURUSD

Following the recent ECB event and Draghi’s comments, the central bank is expected to enhance its data-dependency stance in the next months in light of the ongoing slowdown in the region.

In addition, the US-China trade talks will also be on the investors’ radar this week ahead of the meeting between US and Chinese officials kicking in today and ending tomorrow.

On the more political side, the upcoming EU parliamentary elections (May) should start to grab extra attention in the next weeks, always keeping a close eye to the social scenario in France and Italian political effervescence.

EURUSD technical analysis

At the moment, the pair is gaining 0.01% at 1.1432 and faces initial resistance at 1.1450 (high Jan.29) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9). On the downside, a breach of 1.1413 (21-day SMA) would target 1.1385 (10-day SMA) en route to 1.1326 (200-week SMA).

Disclaimer

This article was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.