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EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

At the start of today's European session, EUR / USD is traded near 1.2087, below the important short-term resistance levels 1.2100 (EMA50 on the daily chart), 1.2132 (EMA200 on the 1-hour chart), 1.2137 (EMA200 on the 4-hour chart).

EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

Below these levels, preference should be given to short positions. A breakdown of the local support level 1.2060 (and ЕМА200 on the monthly chart) may increase the risks of further decline towards summer highs and levels 1.2000, 1.1960.

EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

Despite the technical decline, the long-term positive dynamics of EUR / USD still remains, based primarily on the dollar's tendency to weaken further.

EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

Therefore, it is equally important to consider the current situation as an opportunity to buy the declining EUR / USD pair from the current levels and near the support level 1.2060.

Growth in the zone above the resistance level 1.2137 will confirm the correctness of our conclusions.

EUR/USD: Technical Analysis and Trading Recommendations_02/01/2021

An alternative scenario will be associated with further weakening of the euro and the fall of the EUR / USD. A signal for selling will be a breakdown of the support level 1.2060. If the downward dynamics develops, EUR / USD may decline to long-term support levels 1.1870 (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 1.3870, which began in May 2014), 1.1760 (ЕМА200 on the daily chart).

A breakdown of the support level 1.1285 (Fibonacci level 23.6%) will finally return EUR / USD into a long-term downtrend.

Support Levels: 1.2060, 1.2010, 1.1960, 1.1870, 1.1780, 1.1760, 1.1600, 1.1520, 1.1285

Resistance Levels: 1.2100, 1.2132, 1.2137, 1.2180, 1.2220, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600

Trading Recommendations

Sell Stop 1.2050. Stop-Loss 1.2120. Take-Profit 1.2010, 1.1960, 1.1870, 1.1780, 1.1760, 1.1600, 1.1520, 1.1285

Buy Stop 1.2120. Stop-Loss 1.2050. Take-Profit 1.2132, 1.2137, 1.2180, 1.2220, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600

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