Technical analysis for EUR/USD for January 30, 2019

Posted On 30 Jan 2019

EUR/USD has stopped its rise right below the 61.8% Fibonacci retracement level. This is important short-term resistance area. I believe the odds are that we see a rejection here since bulls were unable until now to break the resistance. If we see a rejection, this will be a bearish sign and will put the major support at 1.1320-1.13 in danger.

Green rectangle – major resistance area

EUR/USD shows signs of slowing down and weakness near the 61.8% Fibonacci retracement. Support is found at 1.1410 and next at 1.1390. Breaking below these two levels will open the way for a retest of the major support area at 1.1320-1.13. A lower high is so far in place and this is a very bearish sign. The bearish scenario expects to see a new downward move starting soon and breaking below 1.13 and moving towards 1.11-1.10. Bulls in order to avoid this scenario will have to hold above 1.1320 and eventually break above 1.15. So far it looks like bears remain in control although as long as price respects support at 1.13 everything is open as we continue to trade inside a trading range for the last three months.

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Source:: Technical analysis for EUR/USD for January 30, 2019

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