EUR/USD technical analysis for January 13, 2015

The EUR/USD pair is in a short-term bearish trend, but this decline is corrective and soon we will see a reversal to the upside. I do not expect the price to break below 1.07.

Red lines - bearish channel

EUR/USD is inside the bearish channel from the mark of 1.0970. The price is sliding lower inside the neutral area of the Ichimoku cloud. Only a break above 1.0950 will confirm a trend reversal on the daily chart. Only then we can feel more comfortable being long targeting 1.11-1.12.

EUR/USD is approaching the 61.8% Fibonacci retracement, which is an important support and we can see a trend reversal around this level. The next level of support is at the 78.6% retracement. Weakness is expected to be short-lived. I expect prices to reverse higher.The material has been provided by InstaForex Company - www.instaforex.com