Technical analysis of EUR/USD for January 27, 2021

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Overview :

The maximum level for the EUR/USD pair (Euro vs U.S. Dollar) was 1.2190 , and the minimum, 1.2054 (the last bearish wave, last week).

The EUR/USD pair has been on a bullish trend ever since touching 1.2138 (pivot). It was all climb from there, with the pair hitting on January this month a multi-month low of 1.2054.

The subsequent recovery has left the pair at levels that were last seen in January 2021.

The EUR/USD pair was trading around the area of 1.2138 a week ago. Today, the level of 1.2138 represents a weekly pivot point in the H1 time frame.

Bulls will get courage if the pair sets above the 1.2138 threshold, for that they won't give up unless the pair falls below the 1.2138 price.

The EUR/USD pair continues to move upwards from the level of 1.2138.

Yesterday, the pair rose from the level of 1.2106 (the level of 1.2106 coincides with a ratio of 38.2% Fibonacci retracement) to a top around 1.2155.

Today, the first support level is seen at 1.2106 followed by 1.2054, while daily resistance 1 is seen at 1.2190.

According to the previous events, the EUR/USD pair is still moving between the levels of 1.2106 and 1.2232; for that we expect a range of 126 pips (1.2232 - 1.2106).

On the one-hour chart, immediate resistance is seen at 1.2160, which coincides with a ratio of 78% Fibonacci retracement. Currently, the price is moving in a bullish channel.

This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100), Therefore, if the trend is able to break out through the first resistance level of 1.2160, we should see the pair climbing towards the daily resistance at 1.2191 to test it.

Then, the pair is likely to begin an ascending movement to 1.2191 mark and further to 1.2232 levels. The level of 1.2232 will act as strong resistance, and the double top is already set at 1.2191.

It would also be wise to consider where to place stop loss; this should be set below the second support of 1.2054.

Trading recommendations :

According to previous events, the EUR/USD pair has still moved between the level of 1.2106 and the 1.2232 level. It should be noted that the 1.2232 price (around double top at the level of 1.2191) will act as a strong resistance on January 25, 2021. Therefore, it will be too gainful to buy long short above the level of 1.2106 and look for further upside with 1.2191 and 1.2232 targets. It should also be reminded that stop loss must never exceed the maximum exposure amounts. Thus, stop loss should be placed at the 1.2054 level today.

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

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