EUR/USD Price, Charts and Analysis:
Recommended by Zain Vawda
Download Our Updated Euro Forecast for Q1 2023
READ MORE: CAD Breaking News: BoC’s 25bps Rate Hike Receives Dovish Reaction, Loonie on Offer
EUR/USD OUTLOOK
EUR/USD continued its advance from yesterday holding above the 1.09 handle following the European open. The Euro gained steam against the greenback yesterday as the knock-on effects from the Bank of Canada rate decision trickled through the market.
The Bank of Canada rate decision seems to have spurred a return of risk on sentiment as markets hope other central banks will follow suit. The BoC announced a pause to rate hikes in order to gauge the effects of recent increases on the Canadian economy. Given that the BoC was the first major central bank to hike rates market participants seem to view yesterday’s announcement as a sign that the Federal Reserve and the ECB may follow suit. ECB policymakers however remain hawkish on the rate hike front as evidenced by comments made yesterday.
Recommended by Zain Vawda
How to Trade EUR/USD
ECB Policymakers Makhlouf, Nagel and Vasle all remained rather hawkish in comments made yesterday as they agreed that further rate hikes were needed while cautioning that the inflation fight may not be over.
We do have some data releases from the US later today, the main one being the GDP growth data. Market participants will be keeping a close watch as the dollar index searches for some clarity.
For all market-moving economic releases and events, see the DailyFX Calendar
TECHNICAL OUTLOOK
The Dollar Index (DXY) is in need of a catalyst to provide some clear direction at the moment. The index has been in a range for the past 9 days with price action similar to that of the holiday season. We are hovering near the range low at present with today’s GDP out of the US likely to provide a much-needed catalyst for a breakout.
Dollar Index Daily Chart- January 26, 2023
Source: TradingView
From a technical perspective, price action remains messy on EUR/USD as we remain within the ascending channel. A breakout of the channel appears unlikely, yet horizontal resistance rests around the 1.0940 area.
The 100 and 200-day MAs are about to cross in a further nod to the upside trend in play at present. The only concern for bulls at this stage is that both the daily and weekly timeframe remain in overbought territory and might be worth keeping in mind.
EUR/USD Daily Chart – January 26, 2023
Source: TradingView
IG CLIENT SENTIMENT: BULLISH
IG Client Sentiment Data (IGCS) shows that retail traders are currently SHORT on EUR/USD with 66% of traders currently holding short positions. At DailyFX we typically take a contrarian view to crowd sentiment, and the fact that traders are SHORT suggests EUR/USD prices may continue to rise.
Written by: Zain Vawda, Market Writer for DailyFX.com
Contact and follow Zain on Twitter: @zvawda
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this.newHeadProvisionalElements)document.head.appendChild(element)activateNewBody()document.adoptNode(this.newElement),this.activateNewBodyScriptElements()activateNewBodyScriptElements()for(const inertScriptElement of this.newBodyScriptElements)var activatedScriptElement=this.createScriptElement(inertScriptElement);inertScriptElement.replaceWith(activatedScriptElement)assignNewBody()document.body&&this.newElement instanceof HTMLBodyElement?document.body.replaceWith(this.newElement):document.documentElement.appendChild(this.newElement)get newHeadStylesheetElements()return this.newHeadSnapshot.getStylesheetElementsNotInSnapshot(this.currentHeadSnapshot)get newHeadScriptElements()return this.newHeadSnapshot.getScriptElementsNotInSnapshot(this.currentHeadSnapshot)get currentHeadProvisionalElements()return this.currentHeadSnapshot.provisionalElementsget newHeadProvisionalElements()return this.newHeadSnapshot.provisionalElementsget newBodyScriptElements()return this.newElement.querySelectorAll("script")class SnapshotCacheconstructor(size)this.keys=[],this.snapshots=,this.size=sizehas(location2)return toCacheKey(location2)in this.snapshotsget(location2)var snapshot;if(this.has(location2))return snapshot=this.read(location2),this.touch(location2),snapshotput(location2,snapshot)return this.write(location2,snapshot),this.touch(location2),snapshotclear()this.snapshots=read(location2)return this.snapshots[toCacheKey(location2)]write(location2,snapshot)this.snapshots[toCacheKey(location2)]=snapshottouch(location2)var location2=toCacheKey(location2),index=this.keys.indexOf(location2);-1setTimeout(()=>resolve(),0))(),snapshot=snapshot.clone(),this.snapshotCache.put(location2,snapshot),snapshot)getCachedSnapshotForLocation(location2)return this.snapshotCache.get(location2)get snapshot()return PageSnapshot.fromElement(this.element)get shouldCacheSnapshot()return this.snapshot.isCacheablefunction extendURLWithDeprecatedProperties(url)Object.defineProperties(url,deprecatedLocationPropertyDescriptors)const deprecatedLocationPropertyDescriptors=absoluteURL:get()return this.toString(),session=new class Sessionconstructor()this.navigator=new Navigator(this),this.history=new History(this),this.view=new PageView(this,document.documentElement),this.adapter=new BrowserAdapter(this),this.pageObserver=new PageObserver(this),this.cacheObserver=new CacheObserver,this.linkClickObserver=new LinkClickObserver(this),this.formSubmitObserver=new FormSubmitObserver(this),this.scrollObserver=new ScrollObserver(this),this.streamObserver=new StreamObserver(this),this.frameRedirector=new FrameRedirector(document.documentElement),this.drive=!0,this.enabled=!0,this.progressBarDelay=500,this.started=!1start()(this.pageObserver.start(),this.cacheObserver.start(),this.linkClickObserver.start(),this.formSubmitObserver.start(),this.scrollObserver.start(),this.streamObserver.start(),this.frameRedirector.start(),this.history.start(),this.started=!0,this.enabled=!0)disable()this.enabled=!1stop()this.started&&(this.pageObserver.stop(),this.cacheObserver.stop(),this.linkClickObserver.stop(),this.formSubmitObserver.stop(),this.scrollObserver.stop(),this.streamObserver.stop(),this.frameRedirector.stop(),this.history.stop(),this.started=!1)registerAdapter(adapter)this.adapter=adaptervisit(location2,options=)this.navigator.proposeVisit(expandURL(location2),options)connectStreamSource(source)this.streamObserver.connectStreamSource(source)disconnectStreamSource(source)this.streamObserver.disconnectStreamSource(source)renderStreamMessage(message)document.documentElement.appendChild(StreamMessage.wrap(message).fragment)clearCache()this.view.clearSnapshotCache()setProgressBarDelay(delay)this.progressBarDelay=delayget location()return this.history.locationget restorationIdentifier()return this.history.restorationIdentifierhistoryPoppedToLocationWithRestorationIdentifier(location2,restorationIdentifier)this.enabled?this.navigator.startVisit(location2,restorationIdentifier,action:"restore",historyChanged:!0):this.adapter.pageInvalidated()scrollPositionChanged(position)this.history.updateRestorationData(scrollPosition:position)willFollowLinkToLocation(link,location2)return this.elementDriveEnabled(link)&&locationIsVisitable(location2,this.snapshot.rootLocation)&&this.applicationAllowsFollowingLinkToLocation(link,location2)followedLinkToLocation(link,location2)this.visit(location2.href,action:action)convertLinkWithMethodClickToFormSubmission(link)var linkMethod=link.getAttribute("data-turbo-method");if(linkMethod)"undefined",form.hidden=!0,link.hasAttribute("data-turbo-confirm")&&form.setAttribute("data-turbo-confirm",link.getAttribute("data-turbo-confirm"));linkMethod=this.getTargetFrameForLink(link);return linkMethod?(form.setAttribute("data-turbo-frame",linkMethod),form.addEventListener("turbo:submit-start",()=>form.remove())):form.addEventListener("submit",()=>form.remove()),document.body.appendChild(form),dispatch("submit",cancelable:!0,target:form)return!1allowsVisitingLocationWithAction(location2,action)this.applicationAllowsVisitingLocation(location2)visitProposedToLocation(location2,options)extendURLWithDeprecatedProperties(location2),this.adapter.visitProposedToLocation(location2,options)visitStarted(visit2)this.notifyApplicationAfterVisitingLocation(visit2.location,visit2.action)visitCompleted(visit2)this.notifyApplicationAfterPageLoad(visit2.getTimingMetrics())locationWithActionIsSamePage(location2,action)return this.navigator.locationWithActionIsSamePage(location2,action)visitScrolledToSamePageLocation(oldURL,newURL)this.notifyApplicationAfterVisitingSamePageLocation(oldURL,newURL)willSubmitForm(form,submitter)formSubmitted(form,submitter)this.navigator.submitForm(form,submitter)pageBecameInteractive()this.view.lastRenderedLocation=this.location,this.notifyApplicationAfterPageLoad()pageLoaded()this.history.assumeControlOfScrollRestoration()pageWillUnload()this.history.relinquishControlOfScrollRestoration()receivedMessageFromStream(message)this.renderStreamMessage(message)viewWillCacheSnapshot()allowsImmediateRender(element,resume)return!this.notifyApplicationBeforeRender(element,resume).defaultPreventedviewRenderedSnapshot(snapshot,isPreview)this.view.lastRenderedLocation=this.history.location,this.notifyApplicationAfterRender()viewInvalidated()this.adapter.pageInvalidated()frameLoaded(frame)this.notifyApplicationAfterFrameLoad(frame)frameRendered(fetchResponse,frame)this.notifyApplicationAfterFrameRender(fetchResponse,frame)applicationAllowsFollowingLinkToLocation(link,location2)return!this.notifyApplicationAfterClickingLinkToLocation(link,location2).defaultPreventedapplicationAllowsVisitingLocation(location2)return!this.notifyApplicationBeforeVisitingLocation(location2).defaultPreventednotifyApplicationAfterClickingLinkToLocation(link,location2)return dispatch("turbo:click",target:link,detail:url:location2.href,cancelable:!0)notifyApplicationBeforeVisitingLocation(location2)return dispatch("turbo:before-visit",detail:url:location2.href,cancelable:!0)notifyApplicationAfterVisitingLocation(location2,action)return markAsBusy(document.documentElement),dispatch("turbo:visit",detail:url:location2.href,action:action)notifyApplicationBeforeCachingSnapshot()return dispatch("turbo:before-cache")notifyApplicationBeforeRender(newBody,resume)return dispatch("turbo:before-render",detail:newBody:newBody,resume:resume,cancelable:!0)notifyApplicationAfterRender()return dispatch("turbo:render")notifyApplicationAfterPageLoad(timing=)return clearBusyState(document.documentElement),dispatch("turbo:load",detail:url:this.location.href,timing:timing)notifyApplicationAfterVisitingSamePageLocation(oldURL,newURL)dispatchEvent(new HashChangeEvent("hashchange",oldURL:oldURL.toString(),newURL:newURL.toString()))notifyApplicationAfterFrameLoad(frame)return dispatch("turbo:frame-load",target:frame)notifyApplicationAfterFrameRender(fetchResponse,frame)return dispatch("turbo:frame-render",detail:fetchResponse:fetchResponse,target:frame,cancelable:!0)elementDriveEnabled(element)getActionForLink(link)link=link.getAttribute("data-turbo-action");return isAction(link)?link:"advance"getTargetFrameForLink(link)((frame=link.closest("turbo-frame"))?frame.id:void 0)get snapshot()return this.view.snapshot;var prototype=session["navigator"];function start()session.start()function registerAdapter(adapter)session.registerAdapter(adapter)function visit(location2,options)session.visit(location2,options)function connectStreamSource(source)session.connectStreamSource(source)function disconnectStreamSource(source)session.disconnectStreamSource(source)function renderStreamMessage(message)session.renderStreamMessage(message)function clearCache()session.clearCache()function setProgressBarDelay(delay)session.setProgressBarDelay(delay)function setConfirmMethod(confirmMethod)FormSubmission.confirmMethod=confirmMethodvar Turbo=Object.freeze(__proto__:null,navigator:prototype,session:session,PageRenderer:PageRenderer,PageSnapshot:PageSnapshot,start:start,registerAdapter:registerAdapter,visit:visit,connectStreamSource:connectStreamSource,disconnectStreamSource:disconnectStreamSource,renderStreamMessage:renderStreamMessage,clearCache:clearCache,setProgressBarDelay:setProgressBarDelay,setConfirmMethod:setConfirmMethod);class SnapshotSubstitutionconstructor(element)this.visitCachedSnapshot=(element:element2)=>varid,clone=this;null!=(element2=element2.querySelector("#"+id))&&element2.replaceWith(clone),this.clone=element.cloneNode(!0),this.id=element.idfunction getFrameElementById(id)if(null!=id)id=document.getElementById(id);if(id instanceof FrameElement)return idfunction activateElement(element,currentURL)if(element)var src=element.getAttribute("src");if(null!=src&&null!=currentURL&&function urlsAreEqual(left,right)return expandURL(left).href==expandURL(right).href(src,currentURL))throw new Error(`Matching element has a source URL which references itself`);if((element=element.ownerDocument!==document?document.importNode(element,!0):element)instanceof FrameElement)return element.connectedCallback(),element.disconnectedCallback(),elementconst StreamActions=after()this.targetElements.forEach(e=>var _a;return null==(_a=e.parentElement)?void 0:_a.insertBefore(this.templateContent,e.nextSibling)),append()this.removeDuplicateTargetChildren(),this.targetElements.forEach(e=>e.append(this.templateContent)),before()this.targetElements.forEach(e=>var _a;return null==(_a=e.parentElement)?void 0:_a.insertBefore(this.templateContent,e)),prepend()this.removeDuplicateTargetChildren(),this.targetElements.forEach(e=>e.prepend(this.templateContent)),remove()this.targetElements.forEach(e=>e.remove()),replace()this.targetElements.forEach(e=>e.replaceWith(this.templateContent)),update()this.targetElements.forEach(e=>e.innerHTML="",e.append(this.templateContent));class StreamElement extends HTMLElementconnectedCallback()return __async$3(this,null,function*()tryyield this.render()catch(error)console.error(error)finallythis.disconnect())render()return __async$3(this,null,function*()var _a;return null!=(_a=this.renderPromise)?_a:this.renderPromise=__async$3(this,null,function*()this.dispatchEvent(this.beforeRenderEvent)&&(yield nextAnimationFrame(),this.performAction())))disconnect()trythis.remove()catch(_a)removeDuplicateTargetChildren()this.duplicateChildren.forEach(c=>c.remove())get duplicateChildren()var _a,existingChildren=this.targetElements.flatMap(e=>[...e.children]).filter(c=>!!c.id);const newChildrenIds=[...null==(_a=this.templateContent)?void 0:_a.children].filter(c=>!!c.id).map(c=>c.id);return existingChildren.filter(c=>newChildrenIds.includes(c.id))get performAction()if(this.action)var actionFunction=StreamActions[this.action];if(actionFunction)return actionFunction;this.raise("unknown action")this.raise("action attribute is missing")get targetElements()return this.target?this.targetElementsById:this.targets?this.targetElementsByQuery:void this.raise("target or targets attribute is missing")get templateContent()return this.templateElement.content.cloneNode(!0)get templateElement()if(this.firstElementChild instanceof HTMLTemplateElement)return this.firstElementChild;this.raise("first child element must be a
