FX.co ★ Fractal analysis for major pairs on January 5, 2021

Outlook on January 5:

Analytical overview of currency pairs on the H1 TF:

The key levels for the euro/dollar pair are 1.2424, 1.2380, 1.2347, 1.2299, 1.2260, 1.2235 and 1.2207. Following the development of the rising trend of December 21, we expect the upward movement to continue after the breakdown of 1.2300, with the target at 1.2347. On the other hand, there is a short-term growth and consolidation in the range of 1.2347 - 1.2380. The potential upward target is the level of 1.2424. After reaching it, a consolidation as well as a pullback downwards is possible.

Short-term decline, in turn, is possible in the range of 1.2260 - 1.2235. If the last value breaks down, a deep correction will occur. Here, the target is 1.2207, which is the key support level for growth.

The main trend is the upward trend from December 21

Trading recommendations:

Buy: 1.2300 Take profit: 1.2345

Buy: 1.2350 Take profit: 1.2380

Sell: 1.2260 Take profit: 1.2237

Sell: 1.2233 Take profit: 1.2208

The key levels for the pound/dollar pair are 1.3921, 1.3809, 1.3731, 1.3612, 1.3561 and 1.3471. Following the upward trend from December 21, we are currently expecting a movement to the level of 1.3731. In this case, short-term growth and consolidation are in the range of 1.3731 - 1.3809. The potential target for growth is the level of 1.3921. Upon reaching which, a downward pullback can be expected.

Meanwhile, short-term decline is expected in the range of 1.3612 - 1.3561. If the last value breaks down, a deep correction will occur. Here, the potential target is 1.3471.

The main trend is the upward trend of December 21

Trading recommendations:

Buy: 1.3733 Take profit: 1.3807

Buy: 1.3811 Take profit: 1.3920

Sell: 1.3611 Take profit: 1.3562

Sell: 1.3560 Take profit: 1.3471

The key levels for the dollar/franc pair are 0.8865, 0.8846, 0.8830, 0.8793, 0.8774, 0.8747 and 0.8732. Following the downward trend from December 28, we expect a short-term decline in the range of 0.8793 - 0.8774. If the last value breaks down, it will lead to a strong decline, with a target at 0.8747. For the potential target to decline, the level of 0.8732 is considered. Upon reaching which, price consolidation and upward pullback are possible.

On another note, short-term growth is possible in the range of 0.8830 - 0.8846. In case that the last value breaks down, it will lead to a deep correction. The next potential target is 0.8865, which is the key support level for the decline.

The main trend is the downward trend from December 28

Trading recommendations:

Buy: 0.8830 Take profit: 0.8845

Buy: 0.8847 Take profit: 0.8865

Sell: 0.8793 Take profit: 0.8775

Sell: 0.8773 Take profit: 0.8747

The key levels for the dollar/yen are 103.45, 103.22, 103.05, 102.76, 102.62, 102.24, 102.00 and 101.66. The downward trend from December 28 is expected to continue after the price passes the noise range 102.76 - 102.62, with a target of 102.24. In this case, there is a short-term decline and consolidation in the range of 102.24 - 102.00. The potential target for the decline is the level of 101.66. After reaching which, price consolidation, as well as an upward pullback can be expected.

Short-term growth is expected in the range of 103.05 - 103.22. If the last value breaks down, a deep correction will occur, with the target of 103.45. This is the key support level for the downward trend from December 28.

The main trend is the downward trend from December 28.

Trading recommendations:

Buy: 103.05 Take profit: 103.21

Buy: 103.23 Take profit: 103.44

Sell: 102.61 Take profit: 102.25

Sell: 102.22 Take profit: 102.02

The key levels for the USD/CAD pair are 1.2932, 1.2897, 1.2848, 1.2805, 1.2731, 1.2709 and 1.2663. Following the formation of a potential for the upward trend from January 4, we expect the upward movement to continue after the breakdown of 1.2805. The target here is 1.2848, near which is a price consolidation. If the target breaks down, it should be accompanied by a strong growth, with a target of 1.2897. The next potential target for growth is the level of 1.2932. Upon reaching which, price consolidation and downward pullback are possible.

A short-term decline, on the contrary, is expected in the range of 1.2731 - 1.2709. The breakdown of the last value will favor the continuation of the downward trend. In this case, the first potential target is 1.2663.

The main trend is the formation of initial conditions for the upward trend from January 4

Trading recommendations:

Buy: 1.2805 Take profit: 1.2846

Buy: 1.2850 Take profit: 1.2897

Sell: 1.2730 Take profit: 1.2710

Sell: 1.2707 Take profit: 1.2665

The key levels for the AUD/USD pair are 0.7824, 0.7793, 0.7743, 0.7706, 0.7683, 0.7657 and 0.7614. Following the upward trend from December 21, we expect the upward movement to continue after the breakdown of 0.7743. In this case, the next target is 0.7793. This will be followed by a potential growth target, which is the level of 0.7824. Upon reaching which, price consolidation and downward pullback can be expected.

In turn, short-term decline is expected in the range of 0.7706 - 0.7683. If the last value breaks down, it will allow us to move to the next level of 0.7657. Its breakdown will lead to a deep correction. Here, the target is 0.7614, which is the key support level for growth.

The main trend is the upward trend of December 21

Trading recommendations:

Buy: 0.7745 Take profit: 0.7791

Buy: 0.7793 Take profit: 0.7824

Sell: 0.7683 Take profit: 0.7658

Sell: 0.7655 Take profit: 0.7615

The key levels for the euro/yen pair are 126.99, 126.69. 125.49, 126.11, 125.83, 125.62, 125.34 and 125.15. Following the development of the downward trend from December 29, we expect the downward movement to continue after the level of 126.11 breaks down. In this case, the next target is 125.83. A short-term decline and consolidation in the range of 125.83 - 125.62 is possible. If the last value breaks down, it will lead to a strong decline, with a target of 125.34. The potential target for the decline will be the level of 125.15, after which price consolidation, as well as an upward pullback can be expected.

On the other hand, short-term growth is expected in the range of 126.49 - 126.69. In case that the last value breaks down, a deep correction will occur. The target here is 126.99, which is the key support level for the decline.

The main trend is the downward trend from December 29

Trading recommendations:

Buy: 126.49 Take profit: 126.67

Buy: 126.71 Take profit: 126.98

Sell: 126.10 Take profit: 125.84

Sell: 125.61 Take profit: 125.35

The key levels for the pound/yen pair are 143.04, 142.10, 141.41, 140.69, 139.63 and 138.88. Following the development of the upward trend of December 21, we expect the upward movement to continue after the breakdown of 140.69. In this case, the first target is 141.41. At the same time, short-term upward movement and consolidation are in the range of 141.41 - 142.10. The next potential target for growth is the level 143.04. Upon reaching which, price consolidation and downward pullback can be expected.

Short-term decline, in turn, is expected in the range of 139.63 - 138.88, wherein a key upward reversal is expected. If the last value breaks down, it will be conducive to the development of a downward trend. In this case, the targets will be determined from the initial conditions on December 24.

The main trend is the upward trend of December 21, correction stage

Trading recommendations:

Buy: 140.70 Take profit: 141.40

Buy: 141.43 Take profit: 142.10

Sell: 139.61 Take profit: 138.90