Technical Analytics Report

EUR/USD: Technical Analysis 28 Jan 2021

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Following the break of long-term trendline resistance (1.6038) in July, and subsequent break of supply at 1.1857/1.1352 in August, EUR/USD, by way of two back-to-back bullish candles, welcomed 2021 in good health.

This—despite January’s modest 0.9 percent slide—reasons additional upside towards ascending resistance (prior support – 1.1641) may eventually be on the horizon.

The primary uptrend has been in play since price broke the 1.1714 high (Aug 2015) in July 2017.

Daily timeframe:

Partly modified from previous analysis –

38.2% Fib support at 1.2059 welcomed price for a second time this month, as the pair failed to find acceptance beyond 1.2189

Buying invites the possibility of retesting 2021 tops at 1.2349; in case of a EUR/USD dip, demand at 1.1923/1.2001 occupies space south of 1.2059—an area complemented by trendline support (1.0774).

The RSI indicator navigated south of the 50.00 centreline on Wednesday, leaving resistance at 60.30 untested.

H4 timeframe:

Partly modified from previous analysis –

Holding back sellers since the beginning of December, demand at 1.2040/1.2065 stepped forward on Wednesday and prompted a hammer candle formation (bullish signal at troughs).

Resistance at 1.2179 also remains in the crosshairs (capping buyers since the middle of January), while a 1.2179 breach shines light on 1.2214 resistance. Interestingly, the aforesaid level is sheltered under supply coming in from 1.2282/1.2245 (Fib fans will also note the 61.8% Fib level inhabits territory at 1.2241).

H1 timeframe:

Pressured by a DXY push to tops at 90.88 on Wednesday, the euro swamped 1.21 bids and greeted support at 1.2058, alongside the RSI indicator dipping a toe in oversold waters.

Short-term price has since staged a moderate revival and regained position above 1.21, with the level welcoming a retest in recent hours and throwing local resistance at 1.2145 in the mix.

Meanwhile, the RSI indicator is on the verge of retesting resistance around the 50.00 centerline.

Observed levels:

The rebound from 38.2% Fib support at 1.2059 on the daily, in tandem with monthly calling for higher terrain and H4 forming a hammer candle from demand at 1.2040/1.2065, could have buyers extend gains off 1.21 on the H1 to at least resistance at 1.2145.

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