19.01.201804:24 Forex Analysis & Reviews: Euro will find it difficult to continue its growth without the support of the ECB

Rumors that the European Central Bank may decide to complete the program of redemption of bonds in early summer has supported the demand for risky assets.

In the first half of Thursday, data showed that in the third quarter of 2017, housing prices in the euro area continued to grow. This is due to strong economic growth within the region.

According to the statistical agency's report, in the third quarter of 2017, compared to the second quarter, house prices rose by 1.7%, and compared to the third quarter of 2016, growth was 4.1%.

Low interest rates in the euro area are also one of the reasons for the price increase, as consumers have access to "cheap" money. The growth of the economy of the eurozone also has a positive impact on consumer confidence.

As I mentioned above, rumors that the curtailment of the bond repurchase program, which may occur earlier, supports the euro. According to the forecast of analysts from Deutsche Bank, the ECB can decide to complete the program of buying bonds at a meeting to be held in June this year. The entire program will be closed during the 4th quarter.

Given the economic indicators, such a forecast, certainly, has the "right to life", but do not forget that the President of the Central Bank, Mario Draghi, can also express concerns about the high rate of the European currency, which will be a direct indication that the ECB is not prepared to abruptly curtail the QE program, the more so prepares the ground for changing the guidelines for future policy.

As for the technical picture of the EURUSD pair, further growth does not cause critical fears just yet and does not break the current downward picture in the trading instrument. Most likely, the upside potential will gradually slow down near the upper boundary of the descending channel, which was formed at the beginning of this week. The level of 1.2280 will be quite a strong resistance.

Commodity currencies brushed off data from China, which indicates that in 2017, the Chinese economy accelerated for the first time in seven years. This shows that the measures of Beijing, which it undertook, has provided a result.

According to the report of the National Bureau of Statistics, in 2017, China's economy grew by 6.9% against growth of 6.7% in 2016. In the fourth quarter, compared with the same period of last year, China's economy grew by 6.8%. Economists had expected growth of 6.7%.

Let me remind you that the target level of Beijing was at the level of 6.5%.