Forex Trading: EURUSD Technical Analysis – January 09, 2020

After a significant downfall, the Euro (EUR) rose against the US Dollar (USD) today, increasing the price to more than 1.1100. The price increase resulted amid the release of important economic news. The technical bias might also remain bullish since the price printed a lower high in the recent downside move as shown on the graph attached.

EUR/USD: Technical Analysis

As of writing this piece, the EURUSD is being exchanged for the price near 1.1113 with at least three resistance levels ahead. The first one might come across the price near 1.1135, the trend line resistance and the second one around 1.1154, the Fibonacci level, both of them may escalate the price towards the downside. The price may then meet the key horizontal resistance level around 1.1238, which may also resist the price strongly keeping it below the said level as shown in the graph below.

EURUSD

Talking about the downside, the price may receive immediate support near 1.1101, it’s key horizontal support which may prevent the price from falling below this level. If the price, however, keeps falling further, the trend line may become a source of assistance for it near 1.1047 and then 1.1016, the low of November 08, 2019, may help the price to sustain above the current level as shown in the graph above.

EUR Industrial Production

From a fundamental point of view, today’s price rise is undoubtedly the result of the Industrial Production release which, on January 09, 2020, significantly changed its negative 1% to 1.1%. Changes in industrial production are widely followed in the manufacturing sector as a major indicator of strength. For the EUR, a high reading is regarded as positive (or bullish),

Trade Idea

Since the trend seems to remain bullish, therefore, opening long term positions may bring good results.

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