The Euro Touches The Initial Targets 19/1/2022

Within the expected bearish context, the single European currency declined significantly against the US dollar. Therefore, we relied on confirming the breach of 1.1370, explaining that this opens the way to visit the first target, 1.1320, to record the euro as low as 1.1315.

Technically, today, and by looking at the 4-hour chart, we notice the price stability below the simple moving averages that pressure the price from above, in addition to the continuation of the negative impact of the bearish technical structure shown on the chart, the double top.

Therefore, the continuation of the bearish trend may be most likely during the day to wait for 1.1270. The decline below the mentioned level constitutes a negative pressure factor that leads the pair to visit 1.1220 next price station.

Activating the suggested scenario depends on the stability of trading, the previously broken support level 1.1370, and most importantly, 1.1400, because the recent breach may enhance the euro’s gains to target 1.1460 again.

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

S1: 1.1270	R1: 1.1400
S2: 1.1220	R2: 1.1460
S3: 1.1165	R3: 1.1505