Technical analysis of EUR/USD for 31/01/2019:
A sudden breakout out of the range, a target is a way higher.
Market technical overview:
The bulls have managed to hit the 61% Fibonacci retracement and break through it towards the next target at 1.1500. This sudden breakout from the horizontal consolidation area has made a new local high at the level of 1.1507, which is at 61% of the Fibo Extension of the previous local swing up. This level might be a target for the current wave up, but if the bulls will get even stronger and decide to follow the recent spike up, then the next target is projected at the level of 1.1566. This is only 4 pips below the swing high at 1.1570. In order to make such a move up, the level of 1.1489 must not be violated, otherwise, the price will pull-back towards the technical support at 1.1449.
Weekly Pivot Points:
WR2 – 1.1506
WR1 – 1.1469
Weekly Pivot – 1.1377
WS1 – 1.1339
WS2 – 1.1268
All buy orders should be set to trailing stop mode, with the protective stop set at the level of 1.1486. Any violation of this level would deepen the pull-back to 1.1449. The target for the buy orders, if the level of 1.1507 is broken before the level of 1.1487 is, can be seen at two distinct levels: 1.1539 and then at 1.1566.
The material has been provided by InstaForex Company – www.instaforex.com