EURUSD: euro to remain under pressure after Lagarde speech

On Thursday, January 23, the euro was down at the close of trading. Bulls lost ground during the speeches at the ECB meeting, including one from ECB President Christine Lagarde. The EURUSD pair fell by 50 points, to 1.1036.

The ECB has left its key interest rates and incentive programs unchanged, with Lagarde commenting that the bank’s monetary policy will remain stimulating for an extended period of timre.

Today’s events (GMT+3)

• From 11:15-12:30 PMI indexes in the manufacturing sector and services sectors in France, Germany, the Eurozone, and the UK are set to be published.
• 13:30 Eurozone: ECB’s President Lagarde speech.
• 16:30 Canada: Retail Sales (MoM) (Nov).
• 17:45 USA: Markit Manufacturing PMI (Jan), Markit Services PMI (Jan).
• 21:00 USA: Baker Hughes US Oil Rig Count.

Current situation

The price fall stopped at the 112th degree. The fall was sharp, and the rebound was weak. In this regard, today we may consider the continuation of the weakening of the euro against the US dollar to the 1.1014 mark.

Most euro cross pairs are trading in the red, so the fall could be sharp. The zone between the 112th and 135th degrees is a reversal, therefore, we think any decrease will be limited to 1.1014. Since the Stochastic Oscillator indicates oversold conditions, we are waiting for the downward wave to come in the American session. Additional pressure on risky assets comes from the latest news out of China concerning the mystery virus. Investors fear the rapid spread of the virus around the world.