09.01.202315:24 Forex Analysis & Reviews: EUR/USD reaches resistance zone. Sell-Off?

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The EUR/USD pair registered strong growth on Friday after the US reported mixed data. It's trading at 1.0685 at the time of writing. The upside pressure remains strong, so it's premature to talk about a new sell-off even if the rate reaches a resistance zone.

Fundamentally, the greenback was punished by the US ISM Services PMI on Friday. The indicator dropped to 49.6 from 56.5 signaling contraction. Today, German Industrial production and the Eurozone Unemployment Rate met expectations. Later, the US is to release the Consumer Credit but I don't think that will have an impact.

Tomorrow, Fed Chair Powell Speaks represents a high-impact event and could really shake the markets. In addition, the US Consumer Price Index and the Core CPI could change the sentiment on Thursday.

EUR/USD Retesting The Sellers!

Technically, the EUR/USD pair dropped a little after reaching and registering only a false breakout above 1.0695. This is seen as static resistance. 1.0713 represents an upside obstacle as well.

The ascending pitchfork's upper median line (uml) stands as a dynamic resistance. Still, as long as it stays above the 1.0660 immediate low, the bias remains bullish.

EUR/USD Outlook!

A valid breakout through 1.0695 and above 1.0713 resistance levels, a new higher high activates further growth and brings new long opportunities as the EUR/USD pair could extend its upwards movement.

Registering only false breakouts above 1.0695 may signal a new sell-off. A deeper drop could be confirmed from below 1.0660.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.