Technical analysis of EUR/USD for January 11, 2021

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Overview :

Last week, the EUR/USD pair closed the week with modest losses, about 179 pips (1.2349 - 1.2170).

The EUR/USD pair has fallen for a second consecutive day, but on the four-hour chart shows that the price is flighting around a bullish 100 EMA, and far above the larger ones, by some means suggesting that the latest decline is corrective.

The EUR/USD pair will continue rising from the region of 1.2130 - 1.2182 today.

So, the support is found at the level of 1.2182, which represents the 23.6% Fibonacci retracement level at the same time frame. Since the trend is above the 23.6% Fibonacci level, the market is still in an uptrend.

Therefore, the EUR/USD pair is continuing with a bullish trend from the new support of 1.2182. The current price is set at the level of 1.2182 that acts as a daily bottom seen at 1.2182.

Equally important, the price is in a bullish channel. According to the previous events, we expect the EUR/USD pair to move between 1.2130 and 1.2265.

As a consequence, strong support will be formed at the level of 1.2182 providing a clear signal to buy with the targets seen at 1.2265.

If the trend breaks the support at 1.2265 (first resistance), the pair will move upwards continuing the development of the bullish trend to the level 1.2349 in order to test the daily resistance 2.

The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.2130 (below the support 1).

On the one-hour chart :

Pivot : 1.2237.

As technical indicators hold at recent lows near oversold readings, as the pair develops below its 100 EMA for the first time since early 5th January.

The EUR/USD pair was trading around the area of 1.2165. Today, the level of 1.2165 represents a daily support in the H1 time frame.

The pair has already formed the minor resistance at 1.2237 and the strong resistance is seen at the level of 1.2349 as it represents the weekly resistance 1.

Thus, the major resistance is seen at 1.2349, while immediate support is found at 1.2167.

If the pair closes above the weekly pivot point of 1.2167, the EUR/USD pair may resume its movement to 1.2349 to test the weekly resistance 1. From this point, we expect the EUR/USD pair to move between the levels of 1.2167 and 1.2349.

Equally important, the RSI is still calling for a strong bullish market and the current price is above the moving average 100.

As a result, buy above the level of 1.2167 with targets at 1.2237 and 1.2349 as so to form a double top.

However, stop loss should always be taken into account; accordingly, it will be beneficial to set the stop loss below the last bearish wave at the level of 1.2100.

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