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17.01.202011:22 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on January 17

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Economic calendar (Universal time)

We are waiting for statistics from the eurozone in the morning. Among the important ones, it can be noted 9:30 (retail sales, UK) and 10:00 (consumer price index, EU). After lunch, the time will come for news from overseas (USA). The most significant indicators will be published at 13:30 (the number of issued building permits) and 15:00 (the number of open vacancies in the labor market).

EUR / USD

Exchange Rates 17.01.2020 analysis

Yesterday, the players on the decline, having tested the resistance of the final level of the daily dead cross (1.1172), made an attempt to complete the rise again and move to an active decline. Today, we can expect a continued decline in the case of updating yesterday's low (1.1128). At the same time, the main bearish landmarks remain in their places - 1.1110 (weekly levels) - 1.1065 (upper border of the daily cloud + weekly Kijun) - 1.1022 (lower border of the daily cloud + weekly Fibo Kijun). If the bears are unable to continue the pair, they will most likely remain within the zone of attraction in the near future, formed by the key levels of the daily dead cross (1.1141-53) and the monthly short-term trend (1.1144) .

Exchange Rates 17.01.2020 analysis

With the decline, players on the decline breakthrough the first important support of the lower halves yesterday. Today, this level (central Pivot level) forms a resistance located at 1.1145. The return of the level by the bulls and reliable fixing above level out most of yesterday's conquest of the bears. As a result, there will be uncertainty, with the prospect of further strengthening the players to increase. Currently, the issue of overcoming the second key support is being resolved - the weekly long-term trend (1.1133). A firm hold below may inspire players to decline to continue to decline. Further bearish reference points within the day may be the support of the classic Pivot levels (1.1118 - 1.1100 - 1.1073).

GBP / USD

Exchange Rates 17.01.2020 analysis

An upward correctional upward turn is realized to its first target - a daily short-term trend (1.3082). Quite often, a full correction is limited to this level. Therefore, the formation of rebound will return the bearish opportunities and prospects. The nearest support is located today at 1.3201 (Senkou Span A), and then, we can consider further bearish signs after consolidation in the daily cloud. In the case of breaking through the resistance of the daily Tenkan (1.3082), the interests of the development of the upward correction will be directed to other levels of the daily dead cross (1.3137 - 1.3209 - 1.3281), and the correction may be the elimination of the existing Ichimoku cross.

Exchange Rates 17.01.2020 analysis

The players on the upside retain key lower halftime support and continue to increase. Today, resistances are the classic Pivot levels located at 1.3096 - 1.3118 - 1.3153. At the same time, key supports are now located at 1.3061 (central Pivot level) and 1.3029 (weekly long-term trend). Consolidation below will change the existing balance of forces and may serve as a beginning for the resumption of decline.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

Evangelos Poulakis
Analytical expert of InstaForex
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