Relevance up to 18:00 2021-01-14 UTC+3
The EURUSD pair was trapped below the previous key-level (1.2000) until bullish breakout occured to the upside recently in December.
Further quick bullish advancement was expressed towards 1.2150 just as expected after failing to find sufficient bearish pressure at retesting of the backside of the broken channel around 1.1970-1.2000 which corresponds roughly to Fibonacci Level of 0%.
Recently, the pair looked overbought while approaching the price levels of 1.2250 (138% Fibonacci Level).
That’s why, conservative traders were advised to look either for SELL Positions around the previous price levels at 1.2330 (150% Fibonacci Level) in the previous article.
Currently, Bearish closure and persistence below 1.2160 then 1.2000 is needed to abort the ongoing bullish momentum to pursue bearish movement at least towards 1.1860 and 1.1770.
This would confirm the ongoing bearish Head and Shoulders Pattern by breaking below the patternneckline around 1.2160.
On the other hand, Conservative traders should look for price action around the price zone around 1.2000-1.1975. This price zone stands as a Demand Zone which can offer bullish SUPPORT for the EURUSD.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Mohamed Samy,
Analytical expert
InstaForex Group © 2007-2021
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