EURUSD Retreats Beneath 1.2150 in Reaction to $2 Trillion US Stimulus Package

EURUSD Price Analysis – January 14

The EURUSD pair remains on the back foot and retreats beneath 1.2150 to register a European session low of 1.2135 level. At the time of this post, the European currency is hovering up at the 1.2164 level. The new American administration is set to announce a generous stimulus package worth $2 trillion which boosted markets and the dollar.

Key Levels
Resistance Levels: 1.2350, 1.2272, 1.2220
Support Levels: 1.2150, 1.2058, 1.1920
EURUSD Long term Trend: Ranging
EURUSD adds to prior sessions’ corrective downside and takes the price to fresh lows in the 1.2135 area. EURUSD appears to be fading after its upside run halts under barrier 1.2220 level. The pair is off its highs could extend its downward correction.

On the other hand, a breakout of 1.2220 level would target 1.2272 level en route to 1.2300 resistance level. The alternative scenario will see the loss of the 1.2150 zones as an initial bearish signal, which would be boosted on a breach beneath (Jan 11) low at the 1.2132 level.
EURUSD Short term Trend: Ranging
The intraday bias in EURUSD stays neutral for some range trading beneath the 1.2220 temporary high level. Meanwhile, the downside of the retreat should be contained by the 1.2058 support level to bring another increase.

On the upside, breach of 1.2272 level may aim for 61.8% forecast of 1.0635 to 1.2011 levels from 1.1602 at 1.2300 level next. The pair is currently signaling a short-term downside correction towards 1.2058 levels. Any more losses could lead the pair towards the 1.2011 support zone.

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