Indicator analysis of EUR/USD. Daily review for January 28.

Trend analysis (picture 1)

On Thursday, EUR/USD is likely to carry on with its downward move from 1.2110 which is the closing price of yesterday's daily candle. The downward target is 1.2063 which is a 38.2% retracement plotted by the red dash line. On the other hand, when this level is tested, it is possible to trade on a retracement upwards with a target at 1.2150 which coincides with resistance plotted by the white thin line.

Today don't miss a batch of important news for the US dollar, in particular the US GDP for Q4 2020, a trade balance report, and a weekly update on the US labor market. This data is due during the New York trade. Market participants could carry on trading EUR/USD downwards.

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Picture 1 (daily chart)

Complex analysis

Indicator analysis – downwards

Fibonacci levels – downwards

Trade volumes – downwards

Trend analysis – downwards

Bollinger bands – downwards

Weekly chart – downwards

Conclusion

On Thursday, EUR/USD is likely to carry on with its downward move from 1.2110 which is the closing price of yesterday's daily candle. The downward target is 1.2063 which is a 38.2% retracement plotted by the red dash line. When this level is tested, it is possible to trade on a retracement upwards with a target at 1.2150 which coincides with resistance plotted by the white thin line.

Alternative scenario

The currency pair could carry on with a downward move from 1.2110 which is the closing price of yesterday's candle. The downward target could be at 1.2063 which is a 38.2% retracement plotted by the red dash line. When this level is tested, the price could extend its down move with a target of 1.2004 which the lower border of Bollinger bands plotted by the black dash line.

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