09.01.201516:19 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for EUR/USD for January 9, 2015

Long-term review

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The EUR/USD pair continued to move lower after breaking below the major DEMAND LEVEL at 1.2250 exposing price levels of 1.2120 and 1.2000 .

Further actions from the ECB regarding QE are still doubted. The market expected the US Non-Farm Employment indicator to drop. Eurozone manufacturing release wasn't that good today. All these reasons led to the current negative EUR/USD pair sentiment.

The euro has lost almost 200 pips since 2015 started, as the market is pushing towards its lowest levels since December 2009.

The market currently looks oversold below price level of 1.2000 and 1.1950 (prominent psychological SUPPORT & the lower limit of the movement channel on the 4H chart).

Currently, selling the EUR/USD pair is considered a high-risk position at such historically low prices. Bullish pullback should be anticipated looking for better prices to sell the pair off.

The price level of 1.1950 is the recently established SUPPLY level. Intraday short positions can be taken there, provided that the market keeps trading below price level of 1.2000.

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