Daily Technical Analysis January 19th 2024

1. EUR/USD Analysis:

News Summary:

ECB meeting minutes showed that policymakers seemed confident that inflation would return to target level but believed that there were substantial risks to maintain high interest rate. It is necessary to continue to be vigilant and patient and maintain a restrictive stance for some time. Investors believe the ECB's inflation outlook is wrong and rate cuts must begin soon, while policymakers believe June is the first reasonable time to reconsider policy.

Trend Analysis:

We can see EUR/USD touched bottom and is still running below 48 hours moving average. On the other hand, the MACD double line and volume column tries to spread upward again. The sell limit could be placed around previous resistance area, stop loss is compulsory.

Today's Key Price Levels:

Key Support Levels: [1.0800]

Key Resistance Levels: [1.0970]

Pivot Points [1.0930]

2. USD/JPY Analysis:

News Summary:

The Bank of Japan is getting closer to raising interest rate for the first time since 2007 and focus on next week's policy meeting is expected to be on any hints from Governor about the timing of a potential rate hike. BOJ watchers unanimously predict that the central bank will remain on hold at its meeting ending this month. Japan's earthquake has basically ended the possibility of raising interest rate in January, with authorities still assessing the full impact of the quake.

Trend Analysis:

We can see USD/JPY fluctuated at high level, and gradually returned to 48 hours moving average on H4 chart. In addition, the MACD histogram bar and double line formed top divergence, the sell limit could be employed, stop loss is necessary.

Today's Key Price Levels:

Key Support Levels: [147.20]

Key Resistance Levels: [149.40]

Pivot Points [148.70]

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