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22.01.2021 11:06 AM
Technical recommendations for EUR/USD and GBP/USD on January 22

EUR/USD

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The bulls took the lead yesterday. As a result, they returned the euro to the all-time level of 1.2170. Thus, it is now important for them not only to break through this level, but also to eliminate the Ichimoku daily cross (1.2202 - 1.2236) in order for new prospects and opportunities to appear. After that, the question will rest on the high of the current weekly correction (1.2349). As for the bears, it is important for them to keep their positions below the met resistance, then return to weekly support levels 1.2075-65 (weekly Tenkan + weekly Fibo Kijun), break through them and if possible, consolidate in the daily cloud. The upper limit is located at 1.2040.

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In the smaller time frames, the bulls still prevail in the market and continue the upward trend. The main pivot points for growth are located at 1.2192 - 1.2217 - 1.2262 (resistances of the classic pivot levels) today. However, we can see a downward correction. The key levels for its continuation are the support levels of 1.2147 (central pivot level) and 1.2116 (weekly long-term trend). A consolidation below can change the market situation, which will lead the bears to update the lows (1.2077-1.2054).

GBP/USD

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The debate continues whether today's weekly candle can confirm yesterday's next update of high, as no one is leading. The following week will be the last one for January, so the bulls are likely to continue to maintain the situation and try to get ahead by consolidating a positive result before January ends. The next resistance in this direction can be noted at 1.3904 (initial target for the breakdown of the weekly cloud). Now, the closest supports are the levels of the daily cross 1.3624 - 1.3532 - 1.3466, supported by the weekly short-term trend (1.3439).

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Bears, in turn, successfully performed a quite deep corrective decline. They broke through the level of 1.3708 (central pivot level), which currently acts as the nearest resistance and support for most of the analyzed technical indicators. In this case, the main bearish prospects is to reach the weekly long-term trend (1.3638) and reverse the moving average. At the moment, the nearest support level of 1.3670 has already been reached.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

Evangelos Poulakis,
Analytical expert of InstaForex
© 2007-2024
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