Euro Breaks Through The Resistance 13/1/2022

Within the bullish context published during the previous analysis, the single European currency managed to achieve noticeable gains against the US dollar. Therefore, we relied on confirming the breach of 1.1380, targeting 1.1360, on recording the euro’s highest level at 1.1455.

On the technical side today, and with careful consideration of the 4-hour chart, we notice that the pair continues to obtain positive stimulus from the 50-day moving average, which meets around 1.1330 and adds more strength to it, in addition to stabilizing the price above the previously breached resistance 1.1370, which is now turned into a support level.

The above-mentioned technical factors may increase the possibility of continuing the rise, and the pair may target 1.1480 and 1.1510, respectively, as next price stations. The pair’s gains may extend later to visit 1.1570.

The decline below 1.1370 will postpone the chances of rising, and we will witness a bearish slope that aims to retest 1.1300/1.1320 before attempting to rise again.

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

S1: 1.1370	R1: 1.1480
S2: 1.1320	R2: 1.1510
S3: 1.1270	R3: 1.1575