EURUSD Technical Analysis 16.01.2017

EURUSD

The pair is above 1.0600 level in anticipation of two major events of this week: the results of ECB meeting on monetary policy and Donald Trump’s inauguration speech this Friday. It is expected that ECB will continue its soft monetary policy and Trump will finally unveil the details of his economic plan. If it all goes as expected, the pair will return to its minimum values that were reached in the end of the previous year.

The price is above the middle Bollinger band, but below SMA 5 and SMA 14. RSI is above 50% level and is declining. Stoch have reversed downwards. 


Trading recommendations:
Today is a US national holiday and by all appearances it won’t be very dynamic, so the pair is likely to remain in the range of 1.0600-1.0685. But if the price falls below 1.0660 level, the pair may lower down to 1.0500 even before ECN meeting.