FX.co ★ Technical Analysis of EUR/USD for January 23, 2015

The Euro stumbles to an 11-year low at 1.1317. Yesterday’s meeting ended up announcing the decision on purchases of bonds issued by euro area, central governments, agencies, and European institutions. Total monthly asset purchases are to amount to €60 billion. Purchases are scheduled to be carried out until at least September 2016. The pair has nominal support at 1.1300, below this another 100-pips fall can take place towards 1.1200 or 61.8 fib level from 2000 October lows to 2008 highs. In case if 1.1200 is also taken off straight away, we can see 1.1000 in the short to medium term. At yesterday’s meeting, the ECB Governing Council decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively. On the other hand, the US unemployment claims decreased by 10,000 to 307,000 in the week ended January 17. In our yesterday’s report, we recommended selling below 1.1540 would give good money. The hourly resistance exists at 1.1400 and 1.1460. For purely speculation perspective, we can recommend a trade for buying above 1.1400 with the targets at 1.1450 and 1.1460. Today, traders are focused on French & German Flash manufacturing PMI .