Technical analysis of EUR/USD for 24/01/2019

Technical analysis of EUR/USD for 24/01/2019:

The downside move continues as the technical support levels are being broken

Market technical overview:

The EUR/USD pair did not manage to break through the technical resistance at the level of 1.1410 and the price spiked to the downside towards the technical support at the level of 1.1306. The local high at the way up was established at the level of 1.1394 and since then the market is moving down. The technical support at the level of 1.1306 is the key short-term support for the bulls as any violation of this level will likely result in another leg down towards the level of 1.1267. This is why it is worth to keep an eye on this level to see what market side, bulls or bears, will gain control over the market.

It is worth to notice, that the market conditions are extremely oversold and the momentum is negative, which should support the short-term bullish outlook and a possible bounce towards the technical resistance at 1.1337 or even 1.1394 level. Nevertheless, the larger time frame trend is still bearish, so the ease of movement is to the downside.

Recommendations:

The bulls will be trying to regain the control of the market once the technical support at the level of 1.1306 is still in play. It should be solid support so the buy orders should be kept open with the target set at the level of 1.1337. In a case of the extension higher, the next target is seen at the level of 1.1394.

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