The Euro is Looking For New Signals 20/1/2022

The moves of the single European currency showed sideways movements that tended to the upside, building on the support of the psychological barrier 1.1300, and the pair is now hovering around its highest level during the early trading of the current session 1.1350.

Technically, by looking at the 4-hour chart, we notice the positive attempts of stochastic to obtain more bullish momentum, which supports the possibility of a rise.

on the other hand, the simple moving averages are still an obstacle in front of the pair, and the 50-day moving average meets around the pivotal supply area 1.1375/1.1370.

With the technical signals conflicting, we prefer staying neutral for the moment until the daily trend becomes clearer, waiting for one of the following scenarios:

Confirming the breach of the aforementioned resistance level 1.1375 may push the pair to the upside to visit 1.1400 and 1.1460, respectively.

The Decline below the support level of the psychological barrier 1.1300 puts the price under negative pressure, with negative targets that start at 1.1220 initially.

Note: CFD trading involves risks; all scenarios may occur.

S1: 1.1300	R1: 1.1370
S2: 1.1270	R2: 1.1400
S3: 1.1220	R3: 1.1465