Talking Points:
– Euro initially rallies on hold decision, but falls during press conference.
– ECB hammers home message that rates will stay low for a very long time.
– No official decision on further accommodative policies.
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Intraday Price Perspective
A scan of this morning’s best and worst performers via the Strong/Weak app in the wake of the ECB press conference shows that the Euro’s previously amassed gains over the past 24-hours have relented, with the EURJPY as the worst performing pair on the H4 timeframe. However, on lower timeframes (m15 and H1), the Euro has already started to stabilize.
With such significant event risk having just passed and more yet to come – January US labor market report tomorrow – the quick shifts in price action seen this morning may be insignificant just a day in the future. Here are where the EURJPY and EURUSD sit after this morning:
TECHNICAL ANALYSIS – CHART OF THE DAY
EURJPYH1 Chart: June 2013 to Present
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– The EURJPY attempted to retake highs seen earlier this week near ¥143.00/20 but failed as a result of price action around the ECB’s press conference.
– The rally off of the weekly low set on Monday may be tentatively breaking lower with a test of 142.00 earlier.
– Price action since last Thursday has resulted in a range between 141.45 and 143.20. Accordingly, as a sideways range has no bias, longs are eyed >143.20 (stop under ECB low of 142.00) and shorts are eyed 1.3655 before further gains look attainable (stop under ECB low of 1.3545); bears will need to see price trade
Source: Daily fx
