EUR/USD: the pair declines again 14 January 2021, 13:04

EUR/USD: the pair declines again

14 January 2021, 13:04

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	1.2130
Take Profit	1.2000
Stop Loss	1.2200
Key Levels	1.2000, 1.2130, 1.2218, 1.2310

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2218
Take Profit	1.2310
Stop Loss	1.2170
Key Levels	1.2000, 1.2130, 1.2218, 1.2310

Current trend

The EUR/USD pair declines, trading around the level of 1.2146.

Yesterday, the European currency strengthened against its main competitors after the publication of macroeconomic statistics. The volume of industrial production in the EU for November rose by 2.5% MoM against the expected growth of 0.2% and adjusted to –0.6% YoY against the background of forecasts of –3.3%. The volume of industrial production in Italy for the same period remained rather low and amounted to –4.2% YoY, which is still better than the forecast of –4.3%.

After a slight downward correction, the American currency returned to the upward dynamics, which determined the instrument's trend. Although the main news is the possible impeachment of US President Donald Trump, experts call the likelihood of this event almost zero since the Senate, most likely, will not take this responsibility.

Support and resistance

Locally, the price left the uptrend, breaking the support line. After a short correction, it is ready to go below the local minimum. Technical indicators maintain a stable sell signal. The fluctuation range of the EMA on the Alligator indicator is expanding, and the histogram of the AO oscillator is trading in the negative zone.

Resistance levels: 1.2218, 1.2310.

Support levels: 1.2130, 1.2000.

Trading tips

After decline or consolidation below the local minimum of 1.2130, sell positions with the target at 1.2000 are relevant. Stop loss is 1.2200, above the local resistance. Implementation period: 7 days or more.

After reversal and global growth or consolidation above the local resistance around 1.2218, buy positions with the target around ​​1.2310 are relevant. Stop loss is 1.2170.