21.01.202017:11 Forex Analysis & Reviews: EUR/USD. January 21. We are waiting for a breakout of the low level of 1.1086 and sell according to the general mood of the market

EUR/USD - 4H.

As seen on the 4-hour chart, EUR/USD pair reversed in favor of the European currency after the formation of a bullish divergence of the MACD, and begin the process of growth towards the upper area of the downward trend of the corridor. It often happens that instead of turning in the direction of the trend, there is a closure outside the corridor, so you should be careful in the upper area of the corridor. I believe that there is a possibility of a new fall of the euro-dollar pair, however, it is better to identify this option by closing the pair's rate below the low level of 1.1086. In this case, traders will be able to count on a further drop in quotes in the direction of the low level of 1.1040. So far, we are dealing with only a small pullback up. The information background today is unlikely to help the euro currency go too high. Research by the ZEW Institute has shown slightly better results than traders expected, however, reports on the mood in the business environment and on the assessment of current economic conditions are unlikely to be of much interest to traders.

Forecast for EUR/USD and trading recommendations:

The long-term trading idea remains valid, as the pair's quotes have performed a consolidation under the upward corridor on the 24-hour chart. Traders still have a long-term target for a fall near the level of 1.0850. Terms of execution - 2-3 weeks.

The short-term trading idea is to sell the pair with the goal of 1.1040 since the trend on the 4-hour chart is again "bearish". Since there is now a pullback, I recommend selling after closing under the previous target of 1.1086.