EUR/USD: ambiguous dynamics 27 January 2021, 11:08

 

EUR/USD: ambiguous dynamics

27 January 2021, 11:08

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2205
Take Profit	1.2271
Stop Loss	1.2160
Key Levels	1.2052, 1.2087, 1.2120, 1.2150, 1.2200, 1.2234, 1.2271, 1.2309

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2115
Take Profit	1.2052
Stop Loss	1.2160
Key Levels	1.2052, 1.2087, 1.2120, 1.2150, 1.2200, 1.2234, 1.2271, 1.2309

Current trend

EUR shows flat dynamics of trading against USD during today's Asian session, consolidating near the level of 1.2150. Investors do not open new trading positions yet, waiting for the Fed's monetary policy comments to be released tonight. The markets were a little wary after Joe Biden's statements that he is ready to adjust the previously announced USD 1.9 trillion stimulus plan for the US economy.

Today, European investors expect the publication of macroeconomic statistics from Germany and France on the level of consumer confidence in February and January, respectively. In addition, attention will be drawn to the speech of the ECB Chief Economist Philip Lane, who can comment on the recent statements by Christine Lagarde about a possible double recession in the eurozone.

Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). The indicator line is also trying to consolidate above the zero level. Stochastic, having reached the level of "80" reversed downwards and does not react to yesterday's resumption of growth of the instrument.

To open new positions, it is necessary to wait for the trade signals to become clear.

Resistance levels: 1.2200, 1.2234, 1.2271, 1.2309.

Support levels: 1.2150, 1.2120, 1.2087, 1.2052.

Trading tips

To open long positions, one can rely on the breakout of 1.2200. Take-profit – 1.2271. Stop-loss – 1.2160. Implementation time: 2-3 days.

The return of "bearish" trend with the breakdown of 1.2120 may become a signal for new sales with the target at 1.2052. Stop-loss – 1.2160.