04.01.202112:13 Forex Analysis & Reviews: Analysis and forecast for EUR/USD on January 4, 2021

The year 2021 has arrived, with which the whole world is hoping to overcome the COVID-19 pandemic through universal vaccination. However, this should take a sufficient amount of time and a new challenge to the world is the so-called new British strain of coronavirus infection, as well as waiting for the third and subsequent waves of this dangerous epidemic. It is characteristic that in China, where it all began when even one infected person is detected, exceptionally strict measures are taken in the form of universal testing of citizens of the territory where the infected person is detected, as well as wormwood closure from the outside world of cities with millions of inhabitants. Agree that to do this, you need to have very strong levers of power, and people's consciousness and discipline should be at the highest level. At a level that Europeans and Americans can only dream of.

Meanwhile, in the United States of America, Donald Trump is preparing to transfer power and leave the Oval Office. Despite numerous promises not to leave his post, Trump lost almost all the courts on fraud in the presidential election and is a decorative figure on which nothing depends. Both ordinary Americans and representatives of parties in the US Congress and Senate understand this. This was confirmed by ignoring Trump's "veto" on the defense budget. However, we will not go into details now, after all, the article is devoted to the main currency pair of the Forex market, so we will proceed to consider the technical picture of this instrument.

Daily

As expected in the last article of 2020, the auction of the coming year opened with a price gap. Most often, this is exactly what happens, so it was recommended to close all open positions and calmly go to celebrate the New Year. And indeed, after a long New Year's weekend, today's trading opened with a price gap up, that is, with a bullish gap. At the time of writing, the EUR/USD pair is trading with a slight increase in the area of 1.2263. It is characteristic that it was the previously designated price zone of 1.2300-1.2320 that stopped the pair's further progress in the north direction. The daily chart clearly shows that the attempts of the bulls on the euro on December 30 and 31 to raise the rate above 1.2300 came across strong resistance from sellers in the area of 1.2309. If the bulls manage to pass this barrier, their next targets will be 1.2320, 1.2350, and 1.2380. We will talk about higher upward benchmarks in the case of consolidation above the level of 1.2300.

H4

At the moment, according to trading recommendations, it is better to look at purchases after a decline to the black support line of the ascending channel, near which the 50 simple and 89 exponential moving averages are located. If you focus on prices, then this is the area of 1.2230-1.2200. More aggressively and riskily, you can try buying a pair from current prices. To open short positions, you need to wait for the appearance of bearish candles on the daily, four-hour, and hourly timeframes in the price resistance zone of 1.2270-1.2310. And in conclusion, it is necessary to note the main fundamental event of the starting week, which will undoubtedly be the reports on the US labor market, which will be published this Friday, January 8.