Technical analysis of EUR/USD for 25/01/2019:
The market bounces from the support, but for how long?
Market technical overview:
The EUR/USD pair made a new swing low at the level of 1.1289, which is technical support as well. Then the market has bounced towards the technical resistance zone at the levels of 1.1324 - 1.1335 but is still trading below this zone. Moreover, the price is trading below the short-term trend line marked in orange, so the bearish pressure is still high.
As long as the price is trading below the trendline, the outlook remains bearish, despite the oversold market conditions. The weak and negative momentum supports this view as well.
Recommendations:
The bearish pressure is still continuing, so the sell order should be still kept open. There is another zone of opportunity that can be used to add to the sell orders or open new ones and this is 1.1324 - 1.1335 zone. The other level is around 1.1355, just below the trend line. Only a sustained breakout through the orange trendline would change the short-term outlook to more bullish and in that case, the target for bulls would be at the level of 1.1380 and in a case of a further extension at the level of 1.1395.
