January 7, 2021 : EUR/USD Intraday technical analysis and trade recommendations.
The EURUSD pair was trapped below the previous key-level (1.2000) until bullish breakout occured to the upside recently in December.
Further quick bullish advancement was expressed towards 1.2150 just as expected after failing to find sufficient bearish pressure at retesting of the backside of the broken channel around 1.1970-1.2000 which corresponds roughly to Fibonacci Level of 0%.
Recently, the pair looked overbought while approaching the price levels of 1.2250 (138% Fibonacci Level).
That’s why, conservative traders were advised to look either for SELL Positions or low risk BUY trades around lower price levels.
Bearish closure and persistence below 1.2160 then 1.2000 is needed to abort the ongoing bullish momentum to initiate a bearish movement at least towards 1.1860 and 1.1770.
However, the intermediate-outlook for the pair remained bullish towards 1.2330 where 150% Fibonacci Level is located. This is where an Intraday SELL Entry was offered as expected in Yesterday’s article.
Conservative traders should wait for a bearish pullback towards the price zone around 1.2000-1.1975. This price zone stands as a Demand Zone to offer bullish SUPPORT for the EURUSD
The material has been provided by InstaForex Company – www.instaforex.com