EUR/USD Daily Analysis
Draghi and the ECB came out swinging today in their policy decisions and press conference, announcing what equates to a 1.1 trillion euro stimulus package over the next couple years in bond and sovereign debt purchases. The ECB hopes the QE program will fight deflation in the Euro zone and inject more liquidity into the markets. Critics say it is too little too late, and dissenters in Germany don’t want to feed the perceived bad habits of other European countries.
Technically the pair touched its 10-day moving average at 1.1650 this morning and promptly sold off, keeping the bearish trend intact. Our target for the next few days is 1.13, though eyes are on Greece elections this weekend. A win for the anti-Euro party could accelerate the fall in Euro.
Our Preferred Trades*: We are setting a sell limit at 1.1530, SL 1.1565, TP @ 1.1430. This setup is good through tomorrow, though we will remove it or close it before the weekend (if triggered PRO members will receive an alert letting you know it is closed).
Yesterday’s EUR/USD SwingPRO Signal Result: No trades taken yesterday.
Today’s SwingPRO Signal: Short on support breaks.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
Today’s Important News Events:
| Date | Time (UTC) | Event | Actual | Forecast | Previous |
|---|---|---|---|---|---|
| Thu Jan 22 |
00:00 | AUD Consumer Inflation Expectation (JAN) | 3.2% | 3.4% | |
| 05:00 | JPY BOJ’s Monthly Economic Report for January | ||||
| 09:30 | GBP Central Government NCR (DEC) | 23.7B | 7.6B | ||
| 09:30 | GBP PSNB ex Banking Groups (DEC) | 13.1B | 9.7B | 12.4B | |
| 09:30 | GBP Public Finances (PSNCR) (Pounds) (DEC) | 21.4B | 7.1B | ||
| 09:30 | GBP Public Sector Net Borrowing (Pounds) (DEC) | 12.5B | 9.0B | 11.7B | |
| 12:45 | EUR European Central Bank Rate Decision (JAN 22) | 0.05% | 0.05% | 0.05% | |
| 12:45 | EUR ECB Deposit Facility Rate (JAN 22) | 0.30% | 0.30% | 0.30% | |
| 12:45 | EUR ECB Main Refinancing Rate (JAN 22) | -0.20% | -0.20% | -0.20% | |
| 13:30 | EUR ECB President Draghi Holds Press Conference | ||||
| 13:30 | USD Continuing Claims (JAN 10) | 2.4M | 2400K | 2424K | |
| 13:30 | USD Initial Jobless Claims (JAN 17) | 307k | 300K | 316K | |
| 14:00 | USD House Price Index (MoM) (NOV) | 0.8% | 0.3% | 0.6% | |
| 15:00 | EUR ECB Consumer Confidence (Jan A) | -8.5 | -10.5 | -10.9 |