EUR/USD analysis for January 16, 2018

analytics5a5de60be0152.png

Recently, the EUR/USD pair has been trading downwards. As I expected, the price tested the level of 1.2201. According to the 30M time – frame, I found a broken 3-day upward channel, which is a sign that buying looks risky and that sellers are in control. I also found a hidden bearish divergence on the moving average oscillator in the background, which is another sign of weakness. I have placed Fibonacci retracement to find potential downward targets. I got FR 38.2% at the price of 1.2158, FR 50% at the price of 1.2115 and FR 61.8% at the price of 1.2075.

Resistance levels:

R1: 1.2310

R2: 1.2359

R3: 1.2420

Support levels:

S1: 1.2203

S2: 1.2140

S3: 1.2095

Trading recommendations for today: watch for potential selling opportunities.

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