Technical analysis of EUR/USD for January 8, 2018

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Overview:

  • The EUR/USD pair has dropped sharply from the level of 1.2088 towards 1.2000. Now, the price is set at 1.2012 to act as a daily pivot point. It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.2030 and 1.1952 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.2030 and 1.2088, which coincides with the 78.6% and 100% Fibonacci retracement level respectively. Additionally, the price is on a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.2030. Thereupon, the price spot of 1.2030/1.1056 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.2030/1.1056, sell below 1.2030 or 1.1056 with the first targets at 1.1984 and 1.1952. However, the stop loss should be located above the level of 1.2120.
The material has been provided by InstaForex Company - www.instaforex.com