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EUR/USD: technical analysis 03.01.20

Current trend

EUR/USD today continues to consolidate in the narrow side channel 1.11639-1.11770. In order to continue the downward dynamic, the pair need to decline below 1.11639. In this case, the next targets of sellers will be the level of 1.11542-1.11389.

Alternative scenario

The upward rebound and pullback above 1.11771 and pair’s sustained trading above 1.11771 will be a sign of upward correction and give a prospect of growth to the 1.12000 resistance. This level is coincided with the middle line of Bollinger Bands and is the key correction target. There is a chance of a downward rebound, while its breakout will be a signal for upward trend resumption. In this case, the next targets of buyers will be the level of 1.12305.

Technical indicators

Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.

Bollinger Bands are diverging on the background of bearish momentum.

MACD volumes are decreasing in the positive zone.

Stochastic is ready to leave the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.11639, 1.11389, 1.11084.
Resistance levels: 1.11771, 1.12000, 1.12305.

Trading recommendations

Short positions can be opened below the level of 1.11639 with the target at around 1.11389 and stop-loss at 1.11722.
Long positions can be opened above the level of 1.11771 with the target at around 1.12000 and stop-loss at 1.11694.

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