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Market View

EURUSD is heading to a major support zone!

Thursday, January 9, 2020 12:43 PM GMT

Though Mid-East tensions are calming down and safe-haven assets such as gold or yen have paused their momentum, the Greenback maintains its bias. As explained in our Market recap, both sides are de-escalating the whole situation and the market acknowledges this.
Earlier today the German data couldn't stall the USD strength while US figures backed it. ADP Non-Farm Employment was better than expected and December's ISM Non-Manufacturing PMI was positive.

Reviewing the weekly chart, EURUSD is moving downwards in a long-term descending channel (C1) however, short-term, the pair has formed a rising channel (C2) where it has already tested the upper side of C2. The resistance (R1) has major importance as the pair failed to violate it twice.


Heading to the daily chart, FIber has an important support zone (Z1) where is potentially a demand zone and buyers may step in. Otherwise, traders will look for the next weekly support level (S1).


Finally, reviewing the hourly chart, the pair is definitely in bearish bias and potentially is forming an ABCD pattern which targets the zone we mentioned on the daily chart. Alternative, Fibonacci extension levels are giving a lower target at 161.8% as pointed. On the other hand, those scenarios will be negated if the price returns above the resistance zone (R2).



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