Technical Analysis of Forex Majors – January 19th, 2020

Technical Analysis of Forex Majors – January 19th, 2020

EUR/USD

EUR/USD has moved considerably lower at the end of last week after peaking around 1.116 USD and setting a clearly lower high and breaking below several week support trend line.

Therefore, we can start to look for opportunities to short the market once further downside is seen and the price retraces significantly. Potential target for the current bearish momentum can be seen around 1.104 USD, however, a reversal could be seen much earlier around 1.1075 USD.

Afterward, target for the retracement can be seen around 1.111 USD and once signs of rejection for further upside are seen around this level, a short position could be taken in expectation that the next major support target around 1.099-1.1 USD will be reached in the following weeks, meaning a potential return of around 1.05% from the resistance.

For now, however, it is best to stay neutral and wait for further price action development as the price has extended too far to the downside to consider a short position right now.

EUR/USD 4H:

EURUSD 4 Hours Technical Analysis 19 Jan 2020

GBP/USD

GBP/USD continues trading in an increasingly tighter range as it peaked around 1.35 USD in the middle of December after several months of very bullish price action.

Last week another higher low around 1.297 USD and a lower high was set around 1.31 USD with a clear rejection to the downside immediately as the price looks to set either another higher low or break below the current support, which could be used to short the market either directly or after a retracement that sets another lower high in the expectation that the next major support around 1.277 USD will be reached during the following days, meaning a potential downside of around 1.55% from the breakout.

Alternatively, a clear move above 1.31 USD high can be used to enter a long position either directly or after a retracement that sets another higher low in the expectation that the next resistance target around 1.328 USD will be reached in the following days, meaning a potential return of around 1.35% from the breakout.

Until then, best would be to stay neutral and wait for further price action development, however, if the price shows strong signs of support around the current low fo 1.297 USD, a short-term long position could be taken as the price will look to set another lower high.

GBP/USD 4H:

GBPUSD 4 Hours Technical Analysis 19 Jan 2020

USD/CAD

USD/CAD continues to consolidate around 1,305-1.308 USD after retracing some of the previous downside and finding resistance around 1.31 USD previous support.

The overall several month trend continues being very bearish after the price reversed around 1.33 USD during the second half of November and the first days of December and has led towards the previous major swing low around 1.305 being broken during the previous downswing, after which the current retracement began.

Since the price has consolidated for several days without no further bullish momentum we can assume that the trend is ready to move back to the downside in the upcoming weeks and a short position can be taken right now. The next target can be seen around 1.289 USD, meaning a potential downside of around 1.3% and a very good risk/reward setup.

Therefore, we are bearish for the price of USD/CAD and a short position can be taken around the current price levels.

USD/CAD 4H:

USDCAD 4 Hours Technical Analysis 19 Jan 2020

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