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05.01.202317:43 Forex Analysis & Reviews: Short-term technical analysis on EURUSD for January 5th, 2023.

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Green line -resistance

Blue lines- Fibonacci extension targets

EURUSD is trading around 1.0550 after making a strong bounce higher yesterday and forming a lower high. Price retraced nearly 61.8% of the recent decline but has not managed to retain the positive momentum. EURUSD is again under pressure today. EURUSD remains vulnerable to a bigger decline towards 1.03 as we explained in previous posts. EURUSD has support at yesterday's lows at 1.0520 and a break below this level would be a new sign of weakness. If support fails to hold, we expect EURUSD to make an equal size decline relative to the last leg down. This will bring EURUSD at 1.0442 and the 100% Fibonacci extension target. At 1.0323 we find the 161.8% Fibonacci extension target which is our 2nd target. We remain bearish EURUSD as long as price is below yesterday's high.

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