FX.co ★ Technical Analysis of EUR/USD for January 5, 2022

Technical Market Outlook

The EUR/USD pair keeps trading inside the zone located between the levels of 1.1303 - 1.1332. Only a sustained breakout above the 1.1332 - 1.1375 would have change the outlook to more bullish in the nearest future. The momentum remains neutral to negative, so the sustained breakout above the zone is still on table, however, due to the low liquidity levels the volatility is high and the market keeps making whipsaw moves. On the other hand, the next target for bears is seen at the level of 1.1228 - 1.1222, but the game changing level is the technical support seen at 1.1185. Traders await the meaningful breakout in either direction.

Weekly Pivot Points:

WR3 - 1.1548

WR2 - 1.1461

WR1 - 1.1437

Weekly Pivot - 1.3050

WS1 - 1.1319

WS2 - 1.1241

WS3 - 1.1214

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501 and 1.1360, which was the lowest level since November 2020. The next important long-term target for bears is seen at the level of 1.1166. The up trend can be continued towards the next long-term target located at the level of 1.2350 (high from 06.01.2021) only if bullish cycle scenario is confirmed by breakout above the level of 1.1909 and 1.2000.