Technical Analysis of EUR/USD for January 28, 2021

Technical Market Outlook:

The EUR/USD pair has broken below the technical support seen at the level of 1.2154 and is hit the next target located at the level of 1.2060. This is the key short-term technical support for bulls and the price had bounced back up again, leaving A Pin Bar candle behind. Moreover, the price is out of the main channel as well, which should accelerate the sell-off. The momentum indicator is weak and negative level already and the market is coming off the overbought conditions, so more downside is expected. The next target for bears is technical support is located at the level of 1.2053.

Weekly Pivot Points:

WR3 - 1.2372

WR2 - 1.2272

WR1 - 1.2235

Weekly Pivot - 1.2140

WS1 - 1.2099

WS2 - 1.2009

WS3 - 1.1957

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. 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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