EUR/USD: technical analysis 08.01.20

Current trend

EUR/USD quotes attempted to grow, but reaching 1.11677 mark (coincided with the middle line of Bollinger Bands)moved to a downward correction. Now the price has the potential of decline to 1.11389-1.11331 support. This area seems an important line for short-term sellers. The decisive breakdown of 1.11331 is needed to indicate the downward trend resumption. In this case, the next targets of sellers will be the level of 1.11084.

Alternative scenario

One may speak about upward movement continuation after the price consolidates above the resistance level of 1.11694. The pair’s sustained trading beyond this level will give a prospect of growth to 1.12000 resistance.

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 is growing in a positive zone.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.11389, 1.11084, 1.10779.
Resistance levels: 1.11694, 1.12000, 1.12305.

Trading recommendations

Short positions can be opened below the level of 1.11389 with the target at around 1.11084 and stop-loss at 1.11490.
Long positions can be opened above the level of 1.11694 with the target at around 1.12000 and stop-loss at 1.11592.

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