EUR/USD - EUR/USD Rose and Challenged Our Target! - 01/23/2017 (GMT)

The euro ended another positive week against the U.S. dollar despite the dovish comments from the European Central Bank. As expected the ECB left monetary policy unchanged, however, the EUR/USD pair is still trading higher and reached our suggested target at 1.0720 during yesterday’s quiet session as it also created the fifth consecutive green week (see technical analysis: http://bit.ly/2k6SeDQ), due to dollar weakness.

The market is still retaining a generally bullish bias as the pair penetrated to the upside the 1.0720 significant barrier and is approaching our second recommended level at 1.0800. First, the price needs to surpass the 100-daily SMA whilst it found a strong support on the 50-SMA on the 4-hour chart. Moreover, beyond there, we could see a run towards the 1.0850 resistance barrier. On the short-term timeframe, the technical indicators are confirming the recent positive attitude on price, as the price rose above the upper band of the Bollinger bands, while the RSI indicator is approaching the 70 level. In addition, the MACD oscillator is moving higher with some strong momentum.