empty
 
 
27.01.2023 11:36 AM
EUR/USD: Technical analysis on January 27, 2023. American economy shows impressive growth

Hello, dear traders! Yesterday, EUR/USD reversed and fell to the 200.0% retracement level of 1.0869 in the 1-hour time frame. In case of a rebound from this level, the quote will return to 1.1000. Meanwhile, consolidation below 1.0869 will lead to a bearish continuation with the target at 1.0750.

This image is no longer relevant

The pair's recent sluggish increase can hardly be called real growth. Bull traders run out of steam. They have dominated the market over the past months. So, they may soon begin to retreat. I expect a correction to occur in the next week or two. The ECB and the Fed will hold their policy meeting next week. In my view, trades have already priced the rate hikes of 0.50% and 0.25% respectively. Therefore, the price is likely to show the opposite reaction to the outcome of those meetings.

The greenback rarely grows now. Yesterday, for example, the Q4 GDP report in the US revealed a 2.9% increase, while traders had expected a 2.6% rise. Durable goods orders came in at 5.6%, beating market expectations of 2.4%. However, the greenback only gained 50 pips. In other words, the bears are now reluctantly selling the instrument. Perhaps they are waiting for the right moment. If after the Fed meeting and the ECB meeting, the pair does not go down, this will mean the greenback may be bearish for several months. The ascending trend corridor in the 4-hour time frame indicates bullish market sentiment.

This image is no longer relevant

In the 4-hour time frame, the pair reversed to the upside. It is now heading toward the 50.0% retracement level of 1.0941. In case of a pullback from this mark, the quote will fall to the 38.2% Fibo level of 1.0610. The ascending trend corridor illustrates bullish market sentiment. The pair is unlikely to plunge before the close below the corridor. A bearish CCI divergence may trigger a drop in price in the coming days.

Commitments of Traders:

This image is no longer relevant

Last week, speculators closed 10,344 long positions and opened 2,346 short positions. The sentiment of major players remains bullish. Speculators now hold 228,000 long positions and 101,000 short positions. EUR/USD is currently bullish, in line with the COT reports. At the same time, the number of longs twice exceeds the number of shorts. The pair has strong growth potential until the ECB raises interest rates by 0.50% at least.

Macroeconomic calendar:

Eurozone: President Lagarde's Speech (10-30 UTC).

United States: Core PCE Price Index (13-30 UTC); Personal Income and Personal Spending (13-30 UTC); Michigan Consumer Spending 15-00 UTC).

On January 27, fundamental factors will have little influence on market sentiment.

Outlook for EUR/USD:

It will become possible to sell the pair after a pullback from 1.0941 in the 4-hour time frame. Targets are seen at 1.0869 and 1.0750. Long positions could be opened if EUR/USD closes above 1.094 in the 4-hour time frame, targeting 1.1000 and 1150.

Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $1000 más!
    ¡En Junio, sorteamos $1000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 100% de bonificación
    Su oportunidad única de obtener un bono del 100 % en su depósito
    OBTENER BONO
  • 55% de bonificación
    Solicite un bono del 55% en cada depósito
    OBTENER BONO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback