Technical analysis for EURUSD: 30th January – 3rd February

In the last trading week, the EURUSD pair managed to break 38.2 Fibonacci level but the pair could not use this advantage and the price fell from that key technical level. The price closed below the 38.2 Fibonacci level which was at 1.0745 level. In the earlier part of the last trading week, the EURUSD pair traded above this key technical level and the pair made new high at 1.0774 but the pair dropped from that level and remained bearish for the later part of the trading week. January is almost to its end and to be precise this month gave many good buying opportunities to the traders.  The pair gained almost 450 pips in this trading month.

In the upcoming week, the initial bias is neutral for this currency pair. There is some major news in the latter part of the next trading week. On Thursday ECB president Draghi will speak in Slovenia and on the Friday Non-Farm Employment Change data will be published. We might see some high volatility in the currency market. We might see some breaching of major technical level on the next trading week. Look forward to those major technical level and use them to you trading method might help you to profit on big margin.

Daily chart analysis for the EURUSD pair


Figure: Technical parameter in the EURUSD pair

Look at the chart, the pair was trading above the 38.2 percent Fibonacci retracement level (swing high 9th November 2016 to sewing low 3rd January 2017) on the last Monday. The price almost traded above from this technical level in the last trading week but the pair failed to use this advantage and fell from this 38.2% Fibonacci level. On the next trading week, buyers might try to push the pair above this 38.2 Fibonacci level. If the buyers can manage to breach this technical level then we might see a sharp bullish run in the currency pair. The pair might hit the daily 100-day moving average which is at 1.0830 level. This level is also the 50% Fibonacci retracement level for this pair so we might see a strong resistance at this resistance level. We might see the pair rebounded from this resistance level. Many price action trader might look closely at this technical level because this resistance level remains intact from the almost last 3 month.

However, we are expecting high volatility in the later part of the next trading week so the price might breaks this key technical level on the next trading week. Many professional price action trader might enter long if the pair manages to break this 100 days daily moving average. We might see a strong bullish run if the pair breach this technical level and the pair might touch the 1.1000 level which is the 200 daily moving average for this currency pair.

On the other hand, since the price is trading below 38.2 Fibonacci level so we might see another fall in the currency pair, the pair might fall To 1.0680 level which is the next support level for this pair, if sellers want to take control from the buyer again then they need to breach this support level. If the somehow seller can manage to break this level then we might see pair test the minor support level at 1.0620 level. Though it is a minor support level but we might see some retracement from this support level. If there is not enough support then we might see a sharp fall to the EURUSD pair. If pair breach this support level then the pair might hit the very strong support level which is on 1.0500 level. This is the very strong technical support level for this pair. Every professional price trader might look this level so closely and we might see a strong rebound from this level. Since many professional traders are looking for a long entry from this level then the traders should use this level to make some profit by entering long from this support level.

Weekly chart analysis for the EURUSD pair

If we look at the weekly chart we see the pair didn’t gain in the last trading week. We might see a high volatility in the next trading week and we might also see many technical levels playing their role in the upcoming trading week. On the upside, the pair might test the 38.2 fibo label (swing high 1st may 2016 to swing low 1st January 2017). If the pair manages to breach this level then we might see a long bullish run in the market. The pair might test the 50 Fibonacci level which is at 1.0984 level and the 100 weekly moving average is at 1.1020 level. This is the strong resistance zone for EURUSD, Many price action trader might enter short from this level. On the downside, the pair might target the 1.0500 level look for any opportunity to sell the pair if Draghi says something dovish in his speech.

Summary: The EURUSD pair is showing sideway trading in the daily and weekly chart. Many professional price action traders might look this market closely and enter long in the market if pair manage to break technical resistance level. In the current situation considering all the parameter and fundamental factors, the EURUSD pair is in slightly bullish mode. In the next trading week, we might see some bullish movement in this pair. However, longer term picture suggests that any break below the 1.0500 level might bring strong selling pressure into this pair.