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Currency
by FXOpen on January 25, 2019

EUR/USD price stable as ECB leaves key interest rates unchanged

On Thursday, the ECB kept key rates and forward guidance unchanged, but lowered its estimate, saying that the balance of risks shifted to a downward trend.

The expectations of an increase in the ECB rate were postponed to mid-2020 three weeks ago. In addition, EUR/USD has lost more than 200 pips in the last two weeks.

However, the Euro fell after the ECB release. Moreover, the ECB’s decision to downgrade the risk assessment could have triggered expectations for changes in the forward guidance at the next meeting on March 7.

EUR/USD Technical Analysis

The Euro faced an increase in selling pressure recently and it broke the 1.1360 support level against the US Dollar. The EUR/USD pair even broke the 1.1320 support area and settled below the 50 hourly simple moving average.

EURUSD-Chart

The pair traded as low as 1.1289 and it is currently correcting higher. It moved above the 23.6% Fib retracement level of the last decline from the 1.1380 high to 1.1289 low. However, there are many hurdles on the upside near the 1.1330 and 1.1340 levels.

The main resistance is at 1.1340 (the previous support) and the 50% Fib retracement level of the last decline from the 1.1380 high to 1.1289 low. Therefore, if the pair corrects higher towards 1.1340, it is likely to face sellers.

On the downside, an initial support is at 1.1310, below which the price could trade towards the 1.1280 level in the near term.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

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