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20.01.202113:07 Forex Analysis & Reviews: Technical analysis of EUR/USD for January 20, 2021

Exchange Rates 20.01.2021 analysis

Overview :

The EUR/USD pair continues to move upwards from the area of 1.2054 - 1.2124.

Today, the first support level is currently seen at 1.2124, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.2054 , which coincides with the last bearish wave.

This support has been rejected three times confirming the veracity of an uptrend.

According to the previous events, we expect the EUR/USD pair to trade between 1.2054 and 1.2167. So, the support stands at 1.2054, while daily resistance is found at 1.2167.

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.2100 - 1.2130.

Hence, strong support will be found at the level of 1.2054 providing a clear signal to buy with a target seen at 1.2167.

If the trend breaks the minor resistance at 1.2167, the pair will move upwards continuing the bullish trend development to the level 1.2202in order to test the daily resistance 2.

The EUR/USD pair is showing signs of strength following a breakout of the highest level of 1.2202.

The market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. Furthermore, the trend is still showing strength above the moving average (100).

Forecast :

Buy orders are recommended above the spot of 1.2054/1.2100 with the first target at the level of 1.2167; and continue towards 0.6766 the next objectives 1.2202.

However, if the EUR/USD pair fails to break through the support level of 1.2054 today, the market will decline further to 1.1996.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Mourad El Keddani,
Analytical expert
InstaForex Group © 2007-2021
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