FX.co ★ Technical analysis of the EUR/USD pair for Jan 3-8, 2021

Trend analysis

The price from the level of 1.1384 (closing of the last weekly candle) may begin to decline to the target of 1.1305 – the historical support level (blue dotted line) this week. If this level is tested, it may move up to the target of 1.1440 – the pullback level of 23.6% (blue dotted line).

Fig 1 (weekly chart)

Comprehensive analysis:

• Indicator analysis - down
• Fibonacci levels - down
• Volumes - down
• Candlestick analysis - up
• Trend analysis - down
• Bollinger lines - down
• Monthly chart - down

A downward movement can be concluded based on a comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in a downward trend without an upper shadow (Monday - down) and with a lower shadow (Friday - up) in the weekly black candlestick.

This week, the price from the level of 1.1384 (closing of the last weekly candle) may start declining to the target of 1.1305 – the historical support level (blue dotted line). After testing it, the upward movement will continue to the target of 1.1440 – the pullback level of 23.6% (blue dotted line).

Alternatively, the price from the level of 1.1384 (closing of the last weekly candle) may start moving down to reach the level of 1.1305 – the historical support level (blue dotted line). Once this level is reached, it may further decline to the target of 1.1263 – the support line (red bold line) and then rise again.