Euro is Facing Negative Pressure 18/1/2022

Negative trades returned to dominate the euro’s movements against the US dollar, after it found a strong resistance level near 1.1480, to start the first weekly trading on a bearish slope. It is now hovering around the psychological support level of 1.1400.

Technically, and carefully looking at the 4-hour chart, we find that the 14-day momentum indicator has started to provide negative signals and the beginning of forming a bearish technical pattern that increases the possibility of witnessing a negative trading session for the EUR/USD.

Although we tend to be negative, we prefer to confirm the breach of the support level 1.1365/1.1370, which meets around the 50-day moving average, putting the price under negative pressure. As a result, we may witness touching 1.1300/1.1320, an initial target whose losses may extend later towards 1.1265.

Activating the suggested scenario depends on the stability of the intraday trading below 1.1430, and most importantly 1.1460, knowing that the confirmation of the recent breach may lead the pair to the bullish path again with initial targets starting at 1.1520 and extending towards 1.1560.

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

S1: 1.1360	R1: 1.1460
S2: 1.1320	R2: 1.1520
S3: 1.1265	R3: 1.1560