EUR/USD: ambiguous dynamics 21 January 2021, 11:02

 

EUR/USD: ambiguous dynamics

21 January 2021, 11:02

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2155
Take Profit	1.2234
Stop Loss	1.2100
Key Levels	1.2000, 1.2052, 1.2087, 1.2150, 1.2200, 1.2234, 1.2271

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2085
Take Profit	1.2000
Stop Loss	1.2130
Key Levels	1.2000, 1.2052, 1.2087, 1.2150, 1.2200, 1.2234, 1.2271

Current trend

EUR is showing insignificant growth against USD today, recovering after falling the day before. At the same time, EUR managed to renew its local highs since January 15 on Wednesday, continuing to receive support from a rather weak position of USD in the market.

Macroeconomic statistics from Europe published on Wednesday did not have a noticeable impact on the instrument's dynamics. Investors' attention was focused on the inauguration procedure of the 46th President of the United States and his first decrees in office. Anyway, the German Producer Price Index in December increased by 0.8% MoM after rising by 0.2% MoM in the previous month. Analysts had expected increase by 0.3% MoM only. In annual terms, the PPI accelerated by 0.2% YoY after falling by 0.5% YoY in November. The Core Consumer Price Index in the eurozone in December rose by 0.4% MoM and 0.2% YoY, which coincided with the data of the previous period and the neutral forecasts.

Support and resistance

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD has reversed to growth having formed a new buy signal (located above the signal line). The indicator is about to test the zero line for a breakout. Stochastic is showing active growth, signaling in favor of the development of "bullish" trend in the nearest future.

Resistance levels: 1.2150, 1.2200, 1.2234, 1.2271.

Support levels: 1.2087, 1.2052, 1.2000.

Trading tips

To open long positions, one can rely on the breakout of 1.2150. Take-profit – 1.2234. Stop-loss – 1.2100. Implementation time: 2-3 days.

The return of "bearish" trend with the breakdown of 1.2087 may become a signal for new sales with the target at 1.2000. Stop-loss – 1.2130.