|

Daily technical and trading outlook – EUR/USD

fxsoriginal
 
Daily EUR/USD technical outlook

Last Update At 21 Jan 2022 00:43GMT.

Trend daily chart

Sideways

Daily Indicators

Turning down

21 HR EMA

1.1328

55 HR EMA

1.1344

Trend hourly chart

Down

Hourly Indicators

Bullish convergences

13 HR RSI

31

14 HR DMI

-ve

Daily analysis

Resumption of recent decline.

Resistance

1.1386 - Dec 31 2021 6-week high.
1.1368 - Thur's high.
1.1332 - Thur's NY morning low (now res).

Support

1.1304 - Intra-day low (AUS).
1.1273 - 2022 low (Jan 04).
1.1223 - 2021 Dec low (12).

EUR/USD - 1.1307. Euro caught a light bid ahead of Asian open n ratcheted high on short covering to 1.1368 in Europe. Despite intra-day choppy swings in NY morning, price later tumbled in tandem with U.S. stocks to 1.1304.

On the bigger picture, despite euro's LT up move FM 2017 near 14-year low of 1.0341 to a fresh 3-year peak of 1.2555 in mid-Feb 2018, decline to a near 3-year 1.0637 low (Mar 2020) signals correction has ended. Although euro staged a rally to a near 33-month 1.2349 peaks in early Jan 2021, subsequent selloff to 1.1705 (Mar) signals top is made. Euro's subsequent break of 1.1705 n then weakness to a fresh 16-month trough of 1.1187 in late Nov may pressure price twd 1.0964 (80.9% r FM 1.0637). Having said that, euro's rebound to 1.1386 (Dec) signals temp. low is made n last week's rally to 1.1482 may bring stronger retracement twd 1.1525, abv needed to extend gain twd 1.1603 which should hold.

Today, euro's selloff to 1.1304 suggests correction FM Nov's 16-month low at 1.1187 has ended at Fri's 7-week 1.1482 high, a daily close below Jan's low would add credence to this view. Intra-day weakness has retained bearishness but 'bullish convergences' on hourly indicators would keep price abv 1.1223.

EURUSD

Author

AceTrader Team

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

More from AceTrader Team
Share:

Editor's Picks

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold jumps above $5,000 as China's gold buying drives demand

Gold price rises to near $5,035 during the early Asian session on Monday. The precious metal extends its recovery amid a weaker US Dollar and rising demand from central banks. The delayed release of the US employment report for January will be in the spotlight later on Wednesday.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans. 

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.