On January 18, the EUR/USD pair attempted to break the 200 EMA and the 21 SMA, failed to consolidate above this level and fell back towards the support of the uptrend channel formed on the 4-hour chart around 1.1300.
The 200 EMA has become a strong resistance for EUR/USD. A technical bounce is expected in the next few hours towards this zone. A sharp break above 1.1352 could be a good opportunity to buy with targets towards 3/8 Murray at 1.1413.
Conversely, following a break below 1.1291 and a consolidation in the 4-hour chart around this area, we can expect a continuation of the dominant downtrend towards 1.1230.
The eagle indicator is bouncing above a slightly uptrend line and showing a positive signal for the next few hours.
Support and Resistance Levels for January 21 - 22, 2022
Resistance (3) 1.1416
Resistance (2) 1.1393
Resistance (1) 1.1350
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Support (1) 1.1304
Support (2) 1.1284
Support (3) 1.1260
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Scenario
Timeframe H4
Recommendation: buy above
Entry Point 1.1310
Take Profit 1.1352 (2/8) 1.1413 (3/8)
Stop Loss 1.1272
Murray Levels 1.1230 (0/8), 1.1291 (1/8), 1.1352 (2/8)
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Alternative scenario
Timeframe H4
Recommendation: sell if it breaks
Entry Point 1.1291 (1/8)
Take Profit 1.1230 (0/8)
Stop Loss 1.1329
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