EUR/USD rose considerably on Thursday

Good morning from Hamburg and welcome to our latest Daily FX Report. This week, after 67 years, the original Land Rover Defender ends production. With more than two millions produced, the old Land Rover Defender is a vehicle that enjoys as much affection as other motoring icons, like the VW Beetle, the Ford Mustang or the original Mini. Designed primarily for farmers and the military, had an expected shelf life of a few years. However, when its sales comfortably outstripped those of regular Rovers, the Land Rover standalone brand was born.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

EUR/USD rose considerably on Thursday, reaching near one-month highs, as foreign exchange traders continued to digest a relatively neutral monetary policy statement from the Federal Reserve after the completion of its two-day January meeting one session earlier. At one point on Thursday, the euro surged to its highest level against the dollar in more than two weeks. After suffering a three-day losing streak versus the dollar at the end of last week, the euro has closed higher against its American counterpart in each of the last four sessions. Investors on Thursday continued to react to a decision by the Federal Open Market Committee (FOMC) to leave shortterm interest rates unchanged. Citing weakness in the global economy and sluggish inflation, the FOMC voted unanimously on Wednesday afternoon to hold its benchmark Federal Funds Rate at its current range between 0.25 and 0.50%. The decision came just over a month after the Fed began its first tightening cycle in nearly a decade with its first rate hike in seven years. A wide sampling of economists are largely split on the direction the Fed will head in with its next move, after reviewing a January statement rife with ambiguity. Analysts appeared divided on whether the statement indicates that the Fed could be leaning toward a subsequent rate hike in March or if the U.S. central bank could delay further tightening measures beyond the first quarter. The decision, according to the Fed's statement, will hinge on evolving labor market conditions, inflation expectations and developments in the global financial markets.
In the euro zone, industrial sentiment for January fell 3.2 points on the month, slightly below forecasts for a 2.4% decline. In addition, economic sentiment in January fell to a reading of 105, just under consensus expectations of 106.4.

Daily Technical Analysis

EURUSD (Daily)

Very positive week for the euro against its American counterparty. The shared currency has been able to end positive in the last sessions helped by a less hawkish message by the Fed about future interest rate hikes. Technically the EURUSD is close to the bearish trend-line (T1) and the 1.0992 resistance so, from now on, it should be more difficult to continue climbing, increasing the odds for a pull-back to the 1.0774 area.

Support & Resistance (Daily)

EUR/JPY (Daily)

Technically, EURJPY was yesterday able to cross easily the 129.61 resistance (now support) and continues climbing from its lows to the next target at the bearish trend-line (T1) , around 132.20, helped by an improved market sentiment and rising oil prices. However, we see the T1 as a very strong resistance, so we assume to close long positions near this level, opening longs again only if the price crosses the mentioned line.

Support & Resistance (Daily)

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