Video Analysis – EUR/USD January 23, 2015

Looking at the EUR/USD pair for the upcoming Friday session, you can see that we have in fact fallen rather drastically. The European Central Bank has announced more quantitative easing in the form of asset purchases so we should continue to see a weakened Euro. Rallies at this point time should be selling opportunities, as the EUR/USD pair should continue to fall from here. Will it be a straight shot down? No, but we believe that the market will eventually head all the way down to the 1.10 level.

This is an extraordinarily bearish market, and should continue to be so now that we have asset purchases been expanded. Ultimately, we believe that the 1.18 area is the beginning of massive resistance in this pair anyway, so we would need to clear the entire zone up there in order to feel comfortable buying, which means a close above the 1.20 level. That is something that does not seem very likely at this point in time, therefore we continue to be sell only.