EUR/USD: technical analysis 16.01.20
The EUR/USD pair begins today’s trading with slight bullish bias and testing the resistance 1.11576. Judging by the downward reversal of the Stochastic, a downward correction is possible soon, but the general upward trend is still maintained. If the "bulls" manage to raise the rate above the level of 1.11629, the growth can continue to the area of 1.11694. This area will be a key level for the buyers in the short term period. There is a chance of a downward rebound, while its breakout would allow the growth to continue to the 1.11847.
The pullback below 1.11476 will be a sign for the downward correction formation and let the price fall to the 1.11389. The downward trend will be restored after the price is set below the level of 1.11336, which is the middle line of Bollinger Bands. In this case, the next targets of sellers will be the level of 1.11237-1.11037.
Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.
Bollinger Bands are pointed upwards.
MACD is growing in a positive zone.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1.11389, 1.11237, 1.11084.
Resistance levels: 1.11629, 1.11847, 1.12000.
Short positions can be opened below the level of 1.11389 with the target at around 1.11237-1.11084 and stop-loss at 1.11493.
Long positions can be opened above the level of 1.11629 with the target at around 1.11847-1.12000 and stop-loss at 1.11505.