Technical analysis of EUR/USD for January 18, 2021

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Overview :

The EUR/USD pair faced resistance at the level of 1.2223, while minor resistance is seen at 1.2125. Support is found at the levels of 1.2040 and 1.2015.

The EUR/USD pair opened below the daily pivot point (1.2125). It continued to move downwards from the level of 1.2125 to the bottom around 1.2065.

Today, the first resistance level is seen at 1.2125 followed by 1.2223, while daily support 1 is seen at 1.2223.

Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.2125.

So it will be good to sell at 1.2125 with the first target of 1.2040. It will also call for a downtrend in order to continue towards 1.2015.

The strong daily support is seen at the 1.2015 level, which represents a major support on the one-hour chart today.

According to the previous events, we expect the EUR/USD pair to trade between 1.2125 and 1.2015 in coming hours.

The price area of 1.2125 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.2125 is not broken.

On the contrary, in case a reversal takes place and the EUR/USD pair breaks through the resistance level of 1.2223, then a stop loss should be placed above the point of 1.2223.

On the four-hour chart :

The EUR/USD pair continued to move upwards from the level of 1.2015. Since December 8th, 2020, the pair has risen from the level of 1.2015 to the top around 1.2340. Current price : 1.2077.

In consequence, the EUR/USD pair broke resistance at 1.2015, which turned into strong support at the level of 1.2015.

In the H4 time frame, the level of 0.9887 is expected to act as major support today. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100).

From this point, we expect the EUR/USD pair to continue moving in the bullish trend from the support level of 1.2015 towards the target level of 1.2125.

If the pair succeeds in passing through the level of 1.2125, the market will indicate the bullish opportunity above the level of 1.2125 so as to reach the second target at 1.2223.

At the same time, if the EUR/USD pair is able to break out the level of 1.2125, the market will decline further to 1.2015 (daily support 2).

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

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