Technical Analysis of EUR/USD for January 25, 2021

Technical Market Outlook:

The EUR/USD pair spend the last 24h around the Friday close of 1.2169 preparing for another wave up. The current situation is very important for bulls, because any violation of the level of 1.2189 (Friday high) will open the road towards the next technical resistance located at the level of 1.2212. This level is the upper channel line as well, so the market reaction on this level is critical. Please notice the strong and positive momentum and overbought market conditions that might result in temporary pull-back towards the technical support seen at the level of 1.2154.

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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