EUR/USD: Technical Analysis and Trading Recommendations 01/13/2021
As we noted in the previous section, at the beginning of today's European session, EUR / USD is traded near the 1.2180 mark, through which the support level in the form of 50% Fibonacci level passes, maintaining generally positive dynamics. The pair remains within the upward channels on the daily and weekly charts, in the zone above the important short-term support level 1.2149 (ЕМА200 on the 4-hour chart).
Given the long-term positive dynamics of EUR / USD, the current zone looks very promising for the resumption of long positions. And the breakdown of the short-term important resistance level 1.2222 (ЕМА200 on the 1-hour chart) will confirm our forecast for the resumption of EUR / USD growth.
After exceeding of the local 32-month high near the mark of 1.2340, the targets will be the resistance levels 1.2500, 1.2580 (the upper border of the channel on the weekly chart and the Fibonacci level of 61.8%), 1.2600.
In an alternative scenario and after the breakdown of the support level of 1.2149, the EUR / USD pair may decline to the long-term and key support level of 1.2070 (ЕМА200 on the monthly chart) separating the long-term bullish trend from the bearish one. A breakdown of the support level 1.2070 will create preconditions for an even deeper correction up to the support levels of 1.1810 (ЕМА144 on the daily chart), 1.1780 (Fibonacci level 38.2% of the upward correction in the wave of the pair's decline from the level of 1.3870, which began in May 2014), above which the long-term positive dynamics of EUR / USD remains. A breakdown of the support levels 1.1500 (ЕМА200 on the weekly chart), 1.1285 (Fibonacci level 23.6%) will finally return EUR / USD to a long-term downtrend.
Support levels: 1.2149, 1.2070, 1.2010, 1.1960, 1.1810, 1.1780, 1.1700, 1.1600, 1.1500, 1.1285
Resistance levels: 1.2180, 1.2222, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600
Sell Stop 1.2135. Stop-Loss 1.2230. Take-Profit 1.2070, 1.2010, 1.1960, 1.1810, 1.1780, 1.1700, 1.1600, 1.1500, 1.1285
Buy by-market. Buy Stop 1.2230. Stop-Loss 1.2135. Take-Profit 1.2270, 1.2340, 1.2555, 1.2580, 1.2600