Technical Analysis of EUR/USD for January 18, 2021

Technical Market Outlook:

After the Rising Wedge price pattern was made, the EUR/USD pair has dropped towards the level of 1.2088, which is inside of the main ascending channel. The lower channel boundary, seen at the level of 1.2065 is very close to the key technical support, located at the level of 1.2060. If this level is clearly violated, then the corrective cycle will get deeper and the next target for bears will be at the level of 1.2000. The weak and negative momentum supports the short-term outlook for this market.

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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