EURUSD Price Bounces Off Resistance Level of $1.22, Targeting Support Level of $1.21

EURUSD Price Analysis – January 11

The Bears may push the pair to the support level of $1.21 provided they maintain their pressure and in case the level does not hold; the price may be exposed to the support levels of $1.19 and $1.18. The bullish trend may continue and face the resistance levels of $1.22, $1.27 and $1.31 provided $1.21 level rejects the down trend.

EUR/USD Market

Key Levels:

Resistance levels: $1.22, $1.27, $1.31

Support levels: $1.21, $1.19, $1.18

 

EURUSD Long-term Trend: Bearish

On the long term outlook, EURUSD is bearish. The bullish trend pushes the currency pair to break up the former resistance levels such as $1.18, $1.19 and $1.21. The currency pair found resistance at $1.24 level on 07 January. A bearish engulfing candle emerged; this is a bearish reversal candle that pushed the price below the support level of $1.22. The just mentioned support level could not hold the price; meaning that the level is weaker than the Bears’ pressure at that moment. The sellers use the opportunity to gain more strength and push down the price targeting the support level of $1.21.

The price has moved below the 21 periods EMA and the 50 periods EMAs which indicates that the Bells’ momentum is increasing. The Bears may push the pair to the support level of $1.21 provided they maintain their pressure and in case the level does not hold; the price may be exposed to the support levels of $1.19 and $1.18. The bullish trend may continue and face the resistance levels of $1.22, $1.27 and $1.31 provided $1.21 level rejects the down trend.

EURUSD medium-term Trend: Bullish

EURUSD is bearish in the medium-term outlook. The price increase was interrupted by the bears before it reaches the resistance level of $1.24. The price reversed and penetrates the two EMAs downside, it breaks the $1.22 support level downside and the price is decreasing towards the $1.21 level.

The price is trading below the 9 periods EMA and 21 periods EMA which indicates that the bears are gaining upper hand in the EURUSD market. The Relative Strength Index period 14 is below 40 levels with a signal line pointing down to indicate sell.