FX.co ★ Technical Analysis of EUR/USD for January 21, 2022

Technical Market Outlook

The EUR/USD pair has been seen testing the ascending channel lower line around the level of 1.1314. Currently, the bulls want to bounce towards the technical resistance seen at the level of 1.1361 again, but the momentum is still weak and negative.The next technical support for bulls is the seen at the level of 1.1285. Please notice, the market is trading down in extremely oversold market conditions on the H4 time frame, so if the bulls are not able to rally in that situation, then the bears will use this opportunity and push the market lower towards 1.1285 and even 1.1260.

Weekly Pivot Points:

WR3 - 1.1710

WR2 - 1.1596

WR1 - 1.1513

Weekly Pivot - 1.1393

WS1 - 1.1312

WS2 - 1.1198

WS3 - 1.1117

Trading Outlook:

The market is in control by bears that pushed the price way below the level of 1.1501, so a breakout above this level is a must for bulls for a trend reversal. The next long-term technical support is located at 1.1167. 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 1.1501 and 1.1599,m otherwise the bears will push the price lower towards the next long-term target at the level of 1.1166.