FX.co ★ Analysis of EUR/USD on January 12. Congress launched Donald Trump's impeachment process

The wave pattern of the EUR/USD pair has already completed its five-wave form. Thus, we can now expect the start of a new section of downward trend. If the current assumption is correct, then the quotes will further decline to the targets located around the 19th and 18th mark. However, we should remember that the demand for the US dollar in recent months has been extremely low, so the upward trend section of the trend might rather continue to be complicated.

At the same time, the wave pattern in the smaller time frame also indicates a possible completion of the upward section. The expected wave 5 in 5 managed to fully complete its form. Now, a successful attempt to break through the low of the expected wave 4 will indicate that the pair is ready to form the three wave sections of the downward trend. So far, everything is inclined to the beginning of a new part of the trend.

As for the news background, every information flow comes only from the United States. There is no news in the European Union, while US economic news is hardly observed. Last week, several economic reports were published, but the most important data was extremely weak. In any case, the US dollar still did not get upset and started to increase for the first time in a long time. Before the past year ended, problems in the United States began to emerge due to the adoption of the 2021 budget, defense budget, and economic aid package. However, they somehow managed to be solved, although Donald Trump resisted Congress as best he could. In early 2021, it became known that the Republicans had also lost their majority in the Senate after the Georgia election. As a result, Trump started getting agitated again and urged his supporters to attack the Capitol. The US President was referring to the rally near the Capitol, but the protesters made their own way inside it. Due to this, several people died, and Donald Trump immediately called on everyone to observe order and the law. Nevertheless, this was enough for the Democrats in the Lower House to begin a new process of impeachment against the president, although his term ends in a week.

Meanwhile, the US president declared the regime of the extreme situation in Washington for two weeks. This regime was introduced after the riots on January 6, as the current head of the White House fears that the situation will repeat itself on January 20 during the inauguration of Joe Biden. Strangely enough, all these events have supported the US dollar, which has been rising for several days in a row. There is absolutely nothing to highlight from this week's economic reports. Anything interesting did not happen in the first two days of this week. But tomorrow, we have the speech of Christine Lagarde, as well as the publication of US inflation.

General conclusions and recommendations:

The EUR/USD pair is assumed to have completed the upward section again. At the moment, it is suggested to sell EUR/USD with targets near the level of 1.20 and 1.19 at every bearish signal of the MACD indicator. So far, everything does not look like a simple corrective wave, but rather the end of the upward trend. But will this be lengthy?