FX.co ★ Technical analysis of EUR/USD for January 07, 2016

Overview:

• The price of the EUR/USD pair has still been trading between 1.0902 and 1.0765 (weekly range). The level of 1.0902 will indicate a strong resistance; moreover, the price will form a double top at this level. Therefore, it will be quite profitable to sell at 1.0902 again (short term) with the first target at 1.0811 and then at 1.0765. Besides, a strong support has been placed at 1.0765 on the H1 chart. On the other hand, if the price closes above the resistance, then the best location for placing a stop loss should be above 1.0902. In addition, please be aware that the trend has broken the weekly support 1 and 2 as it calls for a bearish market. Equally important, the RSI and Moving Average (100) are still calling for a downtrend. Therefore, sell below the spot of 1.0902 with the targets of 1.0811, 1.0786 and 1.0762.

Intraday technical levels:

• R3: 1.1025
• R2: 1.0951
• R1: 1.0902
• PP: 1.0854
• S1: 1.0811
• S2: 1.0762
• S3: 1.0709