Euro Finds Strong Resistance 21/1/2022

The strong supply area published yesterday, at 1.1370, managed to limit the bullish bias witnessed by the euro against the US dollar, which forced it to trade negatively, to retest the psychological support level 1.1300.

On the technical side, the movements are witnessing a downward tendency, between 1.1300 and 1.1370. Although careful consideration of the chart shows the continuation of conflicting technical signals, we find that the RSI is still trying to obtain bullish momentum, which contradicts the continuation of the negative pressure of the EMA50 day, which is accompanied by apparent negative features on stochastic.

Despite the conflicting technical signals, the possibility of a decline is the most preferred. Still, we await confirmation of the break of the 1.1300 support floor, which may put the euro under negative pressure, targeting 1.1260 and extending to visit 1.1220 as long as the price is stable below the resistance level of 1.1375/1.1370.

Trading above the resistance above can stop the possible bearish scenario, and the euro may recover from retesting 1.1400 and 1.1460, respectively.

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