Technical Analysis of EUR/USD for January 22, 2021

Technical Market Outlook:

The EUR/USD pair bounce has hit the level of 1.2177, which is the upper level of the short-term supply zone located between the levels of 1.2154 - 1.2177. The market reversed back to the level of 1.2154. In order to move higher, the bulls must break through 1.2177 clearly and rally towards the level of 1.2212. On the other hand, any failure here will reverse the bounce and the market will again resume the down move towards 1.2088 or lower. Please notice the overbought market conditions support the short-term bearish outlook.

Weekly Pivot Points:

WR3 - 1.2304

WR2 - 1.2263

WR1 - 1.2147

Weekly Pivot - 1.2111

WS1 - 1.2005

WS2 - 1.1985

WS3 - 1.1848

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been up. This means any local corrections should be used to buy the dips until the key technical support seen at the level of 1.1609 is broken. The key long-term technical resistance is seen at the level of 1.2555. The market made the Falling Wedge trend reversal pattern around the levels of 1.2200 - 1.2300 and now the corrective cycle might have started. Any violation of the level of 1.2154 supports the trend change/corrective cycle scenario.

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

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