06.01.202013:21 Forex Analysis & Reviews: EUR/USD. January 6. New long-term trading idea for the euro

EUR/USD - 4H.

On January 3, the EUR/USD pair performed a fall to the lower part of the small upward trend corridor, performed a reversal in favor of the euro and began the process of growth in the direction of the upper line of the global trend corridor. I believe that the fate of the euro for the coming weeks will be decided near this line. Closing the pair's quotes above the downward corridor may mean the end of a multi-month downward trend. The rebound of quotes from this line will work in favor of the US dollar and allow traders to expect a drop of 200-300 points down. Also, the second signal for sales of the euro-dollar pair may be the consolidation of quotations under the upward trend corridor, which will also allow us to expect a further fall of the pair. At the same time, closing over the upward corridor will work in favor of the EU currency and growth of at least 150-200 points up.

Forecast for EUR/USD and trading recommendations:

The previous trading idea was to sell the pair with a target of about 1.1125. Now I suggest that traders wait a bit to find out what will happen near the upper line of the downward corridor. Depending on whether there will be a breakout or a rebound, traders will get goals for growth or fall by about 200 points.