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EUR/USD: technical analysis 13.01.20

Current trend

On the 4-hour chart, the instrument is correcting up from the middle line of the Bollinger Bands and approaching the 1.11389 resistance. Assuming the pair’s ability to cross this level, the mark of 1.11542-1.11694 can be targeted if holding long positions.

Alternative scenario

The downward rebound from 1.11389 and pullback below 1.11237 support will lead the price back to 1.11160-1.11084 support area. This zone is coincided with the middle line Bollinger Bands and can activate an upward rebound, while its breakdown is needed to indicate the downward trend resumption and let the price fall to the area if 1.10931-1.10779.

Technical indicators

Technical indicators maintain a buy signal.

Bollinger Bands are converging on the background of bullish momentum.

MACD volumes are decreasing in the negative zone forming a weak buy signal.

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

Support and resistance

Support levels: 1.11237, 1.11084, 1.10931, 1.10779.
Resistance levels: 1.11389, 1.11542, 1.11694.

Trading recommendations

Long positions can be opened above the level of 1.11389 with the target at around 1.11542-1.11694and stop-loss at 1.11489.
Short positions can be opened below the level of 1.11084 with the target at around 1.11084-1.10779 and stop-loss at 1.11184.

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