Technical analysis of EUR/USD for January 06, 2022

Overview :

Intraday bias in EUR/USD remains mildly on the downside as pull back from 1.1386 short term top is in progress. But downside should be contained by 23.6% retracement of 1.1299 to 1.1342.

The EUR/USD pair continues to move upwards from the level of 1.1272. Today, the first support level is currently seen at 1.1272, the price is moving in a bullish channel now.

Furthermore, the price has been set above the strong support at the level of 1.1272, which coincides with the 00% Fibonacci retracement level - bottom.

This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the EUR/USD pair to trade between 1.1272 and 1.1386.

So, the support stands at 1.1272, while daily resistance is found at 1.1386 (major resistance).

Therefore, the market is likely to show signs of a bullish trend around the spot of 1.1272 - 1.1300.

On the upside, break of 1.1300 will resume the rise from 1.1300 to 1.1386 resistance zone.

In other words, buy orders are recommended above the spot of 1.1300 with the first target at the level of 1.1386; and continue towards 1.1404.

However, if the EUR/USD pair fails to break through the resistance level of 1.1400 today, the market will decline further to 1.1272.