EUR/USD. January 15. We are waiting for the consolidation at 1.1109 to return the pair to a downward direction

Source: Forex Analysis



As seen on the 4-hour chart, the EUR/USD pair fell to the corrective level of 50.0% (1.1109) and rebounded from it. As a result, the pair performed a reversal in favor of the European currency and began the process of growth in the direction of the corrective level of 38.2% (1.1140), which is currently worked out. Thus, I believe that the downward momentum has lost its potential due to the rebound from the Fibo level of 50.0% and the “swinging” of traders around this level. Now, I recommend selling the pair again only if the reversal in favor of the US currency is performed again and the closure is below the Fibo level of 50.0%. Otherwise, the trading idea that predicts a fall to the levels of 76.4% and 100.0% will completely lose its functionality. Today, the divergence is not observed in any indicator.

Forecast for EUR/USD and trading recommendations:

The long-term trading idea remains in force, as the pair’s quotes performed a consolidation under the upward small corridor on the 24-hour chart. Traders got a target for a drop of about 250 points – around the level of 1.0850. The deadline is one to two weeks.

According to the second trading idea, I still expect a fall during the week to the corrective levels of 1.1042 and 1.0981, but at the moment, bull traders have started to move the pair up. I recommend waiting until their fuse runs out and return to selling the pair below the level of 1.1109.

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