FX.co ★ Technical analysis and trading recommendation on EUR/USD for January 28, 2015

Review:

The US dollar weakens further against most major currencies after the mixed US economic reports. The CB consumer confidence index showed an uptick in January standing at 102.9 up from 93.1 in December. The new home sales in the US jumped to the 11.6% highest level in more than six years. This indicates the optimistic outlook for the economy in the new year. The US services PMI has risen for over five years. The index posted 54.0 in January from 53.3 in December. These are the US dollar supporting data. But on the other hand, US durable goods orders fell 3.4% in December following a 2.1% decline in November. The mixed US data pushed the euro almost 200 pips in Intraday against the USD.

Technical view:

At yesterday's session, the pair touched the 34hrsma on the h4-chart and closed below it. Last month, when the pair touched even the 34hrsma it made a new low. It was repeated thrice. As of now, at the early Asian session the pair was unable to breach the 34hrsma level. The pair has Intraday support at 1.1320, 1.1250, and 1.1225. We recommended buying above 1.1300 with the targets at 1.1360 and 1.1450, the pair made a high at 1.1423. The pair has intra week resistance at 1.1460 and 1.1600. The 34hrsma on H4 chart exists at 1.1400. In case a h4 candle manages to close above 1.1400, then it can challenge 60 and 160 pips on the north side. Today, the focus has shifted to the Federal Reserve's policy meeting; the key factor is the deadline of raising the benchmark short-term interest rates. We recommend fresh buying only above 1.1460. We recommend fresh selling below the 1.1295 levels.