Indicator analysis of EUR/USD. Daily review for January 7, 2021

On Wednesday, EUR/USD was trading higher. Yesterday, it broke resistance of 1.2303 plotted by the red bold line and closed the daily candle at 1.2325. On Thursday, don't forget to look into the economic calendar. Important data for the euro is the Eurozone's CPI, retail sales, and consumer confidence. Unemployment claims and ISM non-manufacturing PMI are meaningful for the US dollar. So, there is still a possibility to trade upwards.

Trend analysis (picture 1)

Yesterday, EUR/USD closed at 1.2325. Today, on Thursday, the currency pair can continue its upward move with the target of 1.2392 which is the upper border of the Bollinger bands (plotted by the black dashed line). If this level is tested, there is a possibility to carry on trading upwards with the target at 1.2462 which is a historic resistance level plotted by the blue dashed line.

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Picture 1 (daily chart)

Complex analysis

Indicator analysis – up

Fibonacci grid – up

Trade volumes – up

Candlestick analysis – up

Trend analysis – up

Bollinger bands – up

Weekly chart – up

Conclusion

Yesterday, EUR/USD closed at 1.2325. On Thursday, the currency pair can continue its climb with the target of 1.2392 which is the upper border of the Bollinger bands plotted by the black dashed line. If this level is tested, there is a possibility to carry on trading upwards with the target of 1.2462 which is a historic resistance level plotted by the blue dashed line.

According to the alternative scenario, from 1.2325, the closing level of yesterday's daily candlestick, EUR/USD could begin the downward move with the target of 1.2239 which is a 14.6% retracement plotted by the red dashed line.

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