FX.co ★ Fractal analysis of major pairs on January 20, 2021

Outlook on January 20:

Analytical review of popular currency pairs on the hourly chart:

The key levels for the EUR/USD pair are 1.2273, 1.2239, 1.2214, 1.2180, 1.2153, 1.2126, 1.2100 and 1.2055. The price has formed the expressed initial conditions for the January 18 high. So, we now expect a short-term growth in the range of 1.2153 - 1.2180. If the last value is broken, a strong increase will follow, with a target of 1.2214. After that, another temporary growth associated with a consolidation can be expected in the range of 1.2214 - 1.2239. The ultimate upward target is the level of 1.2273. Once this level is reached, price consolidation and a downward pullback can be expected.

A short-term decline, in turn, is possible in the range of 1.2126 - 1.2100. If the last value is broken, the development of a downward trend will be possible. In this case, the first target is 1.2055.

The main trend is the upward trend from January 18

Trading recommendations:

Buy: 1.2153 Take profit: 1.2180

Buy: 1.2182 Take profit: 1.2214

Sell: 1.2124 Take profit: 1.2100

Sell: 1.2098 Take profit: 1.2057

The key levels for the GBP/USD pair are 1.3855, 1.3765, 1.3725, 1.3644, 1.3544, 1.3506 and 1.3449. Following the upward trend from January 11, the price is currently in correction. We expect it to continue rising after the level of 1.3644 is broken, with a target of 1.3725. A short-term growth is in the range of 1.3725 - 1.3765. If the last value is broken, a strong rise will follow towards the next target of 1.3822. The final upward target is located at 1.3855. Once this level is reached, price consolidation and downward pullback can be expected.

Meanwhile, short-term decline is expected in the range of 1.3544 - 1.3506. If the last value is broken, it will favor the development of a downward trend with the first potential target located at 1.3449.

The main trend is the upward trend from January 11

Trading recommendations:

Buy: 1.3645 Take profit: 1.3725

Buy: 1.3725 Take profit: 1.3765

Sell: 1.3644 Take profit: 1.3608

Sell: 1.3605 Take profit: 1.3565

The key levels for the USD/CHF pair are 0.8985, 0.8966, 0.8933, 0.8909, 0.8876, 0.8855 and 0.8824. Following the bullish trend from January 6, the pair is expected to make a short-term growth in the range of 0.8909 - 0.8933. If the last value breaks down, a strong rise is expected with the target of 0.8966. The next potential upward target is considered at 0.8985. After reaching this level, price consolidation and downward pullback can be expected.

On another note, a consolidated movement is expected in the range of 0.8876 - 0.8855. If the last value is broken, a deep correction will happen. The potential target is 0.8824, which is the key support for growth.

The main trend is the upward trend from January 6

Trading recommendations:

Buy: 0.8911 Take profit: 0.8931

Buy: 0.8934 Take profit: 0.8966

Sell: 0.8876 Take profit: 0.8857

Sell: 0.8854 Take profit: 0.8830

The key levels for the USD/JPY are 104.42, 104.08, 103.87, 103.49, 103.22, 102.88 and 102.66. The price is forming a potential for the downward trend from January 11. So, the pair is expected to make a short-term decline in the range of 103.49 - 103.22. The breakdown of the last value will lead to a strong decline with the target of 102.88. This will be followed by the potential downward target of 102.66. Once this level is reached, price consolidation and upward pullback are possible.

A consolidated movement is also expected in the range of 103.87 - 104.08. If the last value is broken, it will be conducive to the next development of an upward trend. In this case, the potential target is 104.42.

The main trend is the upward trend from January 6 and formation of bearish potential from January 11

Trading recommendations:

Buy: 103.87 Take profit: 104.06

Buy: 104.11 Take profit: 104.40

Sell: 103.49 Take profit: 103.23

Sell: 103.20 Take profit: 102.90

The key levels for the USD/CAD pair are 1.2960, 1.2908, 1.2815, 1.2796, 1.2761, 1.2700, 1.2674 and 1.2623. The price is in a correction from the upward trend of January 14. Now, we expect the pair to continue rising after the level of 1.2761 is broken, with the first target of 1.2796. The main development of the trend will follow after the price overcomes the noise range of 1.2796 - 1.2815 and moves to the next target of 1.2868. At the same time, a short-term rise and consolidation can be observed in the range of 1.2868 - 1.2908. The potential upward target is 1.2960. After reaching this level, price consolidation and downward pullback are possible.

A short-term decline, on the contrary, is expected in the range of 1.2700 - 1.2674. If the last value is broken, it will favor the development of a downward trend with the first potential target located at 1.2623.

The main trend is the upward trend of January 14

Trading recommendations:

Buy: 1.2761 Take profit: 1.2796

Buy: 1.2816 Take profit: 1.2868

Sell: 1.2700 Take profit: 1.2675

Sell: 1.2673 Take profit: 1.2625

The key levels for the AUD/USD pair are 0.7809, 0.7762, 0.7735, 0.7713, 0.7675, 0.7638, 0.7589 and 0.7556. Following the formation of the downward trend from January 14, the pair is expected to continue declining after the breakdown of 0.7675, with a target of 0.7638. Price consolidation is near this level. If the target is broken, a strong decline will develop towards the new target of 0.7589. The ultimate target for the decline is the level of 0.7556. Upon reaching which, price consolidation and upward pullback are expected.

In turn, short-term growth is expected in the range of 0.7713 - 0.7735. If the last value breaks down, it will lead to a deep correction with a target of 0.7762. This is the key downward support level.

The main trend is the formation of a downward trend from January 14

Trading recommendations:

Buy: 0.7736 Take profit: 0.7760

Buy: 0.7764 Take profit: 0.7807

Sell: 0.7675 Take profit: 0.7640

Sell: 0.7636 Take profit: 0.7590

The key levels for the EUR/JPY pair are 127.27, 126.98, 126.55, 126.20, 125.80, 125.58, 125.29 and 125.03. The price is currently forming a potential from the January 18 high. In this case, it is expected to continue its growth after the range of 126.20 - 126.55 is broken. Upon the breakdown of the last value, strong growth will continue towards the target of 126.98. The final potential upward target is 127.27. Once this level is reached, price consolidation and a downward pullback can be expected.

On the other hand, short-term decline is expected in the range of 125.80 - 125.58. If the last value is broken, a deep correction will occur, with a target of 125.29. This is the upward key support level.

The main trend is the upward trend from January 18

Trading recommendations:

Buy: 126.20 Take profit: 126.55

Buy: 126.57 Take profit: 126.96

Sell: 125.80 Take profit: 125.60

Sell: 125.55 Take profit: 125.30

The key levels for the GBP/JPY pair are 142.83, 142.52, 142.03, 141.65, 141.23, 140.93 and 140.61. The price is forming potential from the high on January 18. In this case, we expect it to continue increasing after the level of 141.65 is broken, with a target of 142.03. Around which, a consolidation is possible. If the target is broken, a strong growth will follow and this will lead us to the next target of 142.52. The ultimate target is the level of 142.83. Once this level is reached, price consolidation and downward pullback will occur.

Short-term decline, in turn, is possible in the range of 141.23 - 140.93. If the last level is broken, a deep correction will occur, with a target of 140.61. This is a key upward support and the price overcoming it will cancel the development of the downward trend. If this happens, the potential target will be 139.96.

The main trend is the downward trend from January 13, correction stage

Trading recommendations:

Buy: 141.65 Take profit: 142.00

Buy: 142.05 Take profit: 142.50

Sell: 141.20 Take profit: 140.94

Sell: 140.92 Take profit: 140.63