EURUSD Bullish Sentiment Returns Past 1.2150 Level As ECB Policy Sparks Volatility

EURUSD Price Analysis – January 21

EURUSD continues to rally in an attempt to sustain its break higher past 1.2150 level as buyers maintain upside sentiment. The pair reacts to the latest ECB policy statement on rates which sparks volatility amongst EUR pairs.

Key Levels
Resistance Levels: 1.2554, 1.2350, 1.2214
Support Levels: 1.2050, 1.1900, 1.1602
EURUSD Long term Trend: Ranging
After its recent surge beyond the 1.2150 level, any subsequent retreat is likely to find some support near the MA 5, currently around the 1.2104 regions. A convincing break below might prompt some technical selling and accelerate the slide towards the 1.2011 congestion zone amid a focus on the ECB statement.

In the long term, the increase from 1.0635 is seen as the third phase of the trend from 1.0339 (low). Further rally could be seen to cluster resistance at 1.2554 level next. This may stay as the preferred scenario as long as the 1.1602 support level holds intact. But sustained breach there may usher in long term bullish implications.
EURUSD Short term Trend: Ranging
EURUSD is staying in consolidation from 1.2350 high and intraday bias stays neutral first. In the instance of another decline, as range trading continues, the downside may be limited by the 1.2050 support level to usher in recovery.

On the upside, though, a sustained breach of 1.2150 level may restart a larger rally to 61.8% forecast of 1.0635 to 1.2011 from 1.1602 at 1.2452 levels next. A bullish breach beyond 1.2214 may take the pair higher towards the initial aim at 1.2350 with possible extensions at 1.24 and 1.25 levels.

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results