EUR/USD Forecast: At weekly highs as Lagarde speaks

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2159

The ECB left its monetary policy unchanged as widely anticipated.
US employment and housing data beat expectations, supporting the risk-on mood.
EUR/USD is technically bullish nearing a critical Fibonacci resistance at around 1.2170.

The EUR/USD pair is up this Thursday, trading at fresh weekly highs as the European Central Bank head, Christine Lagarde, explains the latest central bank’s decision on monetary policy. The ECB kept its monetary policy unchanged, as widely anticipated, reaffirming its accommodative stance to keep supporting economies through the pandemic.

The US just released some encouraging data, as Building Permits rose 4.5% in December, while Housing Starts were up by 5.8%. Initial Jobless Claims contracted to 900K in the week ended January 15, better than the 910K expected. Also, the Philadelphia Fed Manufacturing Survey printed at 26.5, improving from 9.1 and much better than the 12 expected.

EUR/USD short-term technical outlook

The EUR/USD pair is trading around 1.2160, retaining most of its daily gains. Still, the pair is below the 23.6% retracement of the November/January rally at 1.2172, the immediate resistance. In the near-term, the 4-hour chart indicates that further gains are likely, as the pair advances above a now bullish 20 SMA. The longer moving averages lack directional strength above the mentioned Fibonacci resistance, while technical indicators advance within positive levels.

Support levels: 1.2100 1.2060 1.2020

Resistance levels: 1.2170 1.2225 1.2260

View Live Chart for the EUR/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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