Technical analysis of EUR/USD for 23/01/2020:

Technical Market Overview:

The EUR/USD pair has been trading sideways for the last 24 hours, but in the meantime, the bears have managed to make a new local low at the level of 1.1070. Just after the local technical resistance was violated and the new local high was made at the level of 1.1118, the bounce was capped and bears have once again pushed the price towards the level of 1.1076 which is the key short-term technical support. The momentum remains weak and negative, so the last move up was just a bounce or a local counter-trend correction. To reverse the downtrend, the bulls would have to break through the level of 1.1174, otherwise, the next target for bears is seen at the level of 1.1065 and 1.1040.

Weekly Pivot Points:

WR3 - 1.1216

WR2 - 1.1193

WR1 - 1.1130

Weekly Pivot - 1.1046

WS1 - 1.1042

WS2 - 1.1019

WS3 - 1.0955

Trading recommendations:

Not much has changed since the last week in a bigger perspective. Still, the best strategy for current market conditions is to trade with the larger timeframe trend, which is down. All upward moves will be treated as local corrections in the downtrend. The downtrend is valid as long as it is terminated or the level of 1.1445 clearly violated. There is an Ending Diagonal price pattern visible on the larget timeframes that indicate a possible downtrend termination soon. The key short-term levels are technical support at the level of 1.1040 and the technical resistance at the level of 1.1267.

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