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Forecast for EUR/USD on January 23, 2020

EUR/USD

Yesterday, the euro rose by 11 points due to the strong growth of the British pound by 92 points after the House of Lords approved the Brexit bill. In the ongoing impeachment process of the US President, the Senate rejected the Democrats' demand to conduct the procedure under an expanded program, that is, with the questioning of witnesses and consideration of documents. The decision will be made on the reduced program, which will mean the early acquittal of President Trump. For the dollar, this is not a reason to strengthen, but for the euro, there is no incentive to grow.

The results of the two-day ECB meeting will be announced today. The regulator's immediate topic of discussion is the issue of repurchasing so-called "green" bonds on the Central Bank's balance sheet, that is, the debt of those companies that invest in environmental projects. This is a banal extension of the QE program, and if any decisions are made in this direction, the euro will noticeably weaken.

analytics5e290ca616c11.png

As seen on the daily scale chart, the price received support from the Fibonacci level of 123.6%. Today, we are waiting for the overcoming of this support and the movement of the euro to 1.1030. Overcoming the support of the embedded line of the price channel will open the second target - the Fibonacci level of 138.2% (1.0986).

analytics5e290cbe690ca.png

As seen on the H4 chart, no changes have occurred over the past day, and the price is also consolidating before the level of 1.1073.

The material has been provided by InstaForex Company - www.instaforex.com