24.01.202010:45 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on January 24

Economic calendar (Universal time)

The economic calendar is quite calm today, but you need to pay attention to a number of significant indicators for the UK and the eurozone in the morning.

So now, indexes of business activity and a composite index for the UK will be published at 9:30 UTC+00, as well as the expected performance of the President of the ECB.

EUR / USD

Yesterday, the pair made an attempt to break through the supports holding back the development of the decline, after another test of resistance in the 1.1110 protected area (weekly levels + daily Tenkan + upper border of the daily cloud). As a result of the successful attack, we managed to go beyond the limits of the daily cloud and the weekly medium-term trend. Today, we are closing the week. A small lower shadow on the weekly candle and closing below important levels for this section of the movement (1.1065 weekly Kijun + lower border of the daily cloud) will provide players with a lower level of safety for their positions and prospects. The prospects and subsequent plans now primarily include the elimination of the weekly golden cross (final line 1.1021), as well as the preservation of pronounced bearish potential with the upcoming closing of the first month of the new year.

You can see that the development of yesterday's upward correction was implemented again within the framework of the key resistance of the lower halves. These levels were able to limit and complete the correctional rise, after which the lower players restored the downward trend. Today, reference points for the continuation of decline within the day are the support of the classic Pivot levels (1.1024 - 1.0993 - 1.0951). On the other hand, key resistance will meet a pair at 1.1066 (central Pivot-level of the day) and 1.1086 (weekly long-term trend) in the case of the development of another upward correction.

GBP / USD

The week threatens to consolidate the predominance of forces on the side of the players to increase, but raises great doubt that this achievement will be significant and decisive. Today, important resistance continues to hang before the players (1.3171 weekly Tenkan + monthly Kijun - 1.3314 lower boundary of the monthly cloud - 1.3452 final boundary of the monthly dead cross), which they will have to overcome before they manage to get closer to the maximum extreme weekly correction (1.3514). Moreover, today's attraction is provided by the daily Kijun and Fibo Kijun (1.3094 - 1.3139), support is still located at 1.3053 (daily short-term trend) and in the region of 1.2920 - 1.2877 (accumulation of high levels).

Developing a corrective decline, the players lowering to H1 have not been able to cope with the central Pivot level (1.3122) for a long time, remaining in the zone of its attraction. Now, breaking through the level will make the support of the weekly long-term trend (1.3062) the next important reference point for the downward correction. If the central Pivot cope with the task and is able to restrain the development of the correction, then the resistance within the day will be R2 (1.3176) and R3 (1.3202), after the restoration of the trend (1.3152).

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