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20.01.202110:30 Forex Analysis & Reviews: Technical recommendations for EUR/USD and GBP/USD on January 20

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EUR/USD

Exchange Rates 20.01.2021 analysis

The pair in the daily time frame rebounded from the reached support levels of 1.2075-65. In the near future, it is planned to retest the overcame level of 1.2170 (historical level + daily Tenkan), and slightly above it, the resistances of the daily dead cross of Ichimoku 1.2202 (daily Kijun) and 1.2236 (daily Fibo Kijun) are located. The situation will develop depending on the outcome of interaction with these nearest resistances. From the current movement, possible options can be considered: consolidation and preservation of uncertainty; end of the daily upward correction and continued decline; breakdown of the nearest resistance and the formation of prerequisites to restore the weekly upward trend.

Exchange Rates 20.01.2021 analysis

Bulls have the initial advantage in the smaller time frames. They consolidated above the key levels, which are combining their strength at 1.2116-23 (central pivot level + weekly long-term trend) today. At the moment, the first resistance of the classic pivot levels (1.2157) is being tested. Other resistances can be noted at R2 (1.2187) and R3 (1.2228).

The movement will remain uncertain if the pair continues to work in the zone of attraction and influence of the key levels (1.2116-23) in the hourly chart. The support levels, in turn, are located at 1.2086 - 1.2045 - 1.2015.

GBP/USD

Exchange Rates 20.01.2021 analysis

Yesterday, bullish traders continued to recover their positions and stayed above the daily short-term trend (1.3580), which is now the first important support in the higher time frames. The loss of the level will deprive the bulls of the daily short-term support, opening the way to the weekly short-term. The upward pivot point today is the maximum extremum of the current movement (1.3710). Upon consolidation above, we can expect the bulls to continue the upward trend.

Exchange Rates 20.01.2021 analysis

The analyzed technical tools favor the bulls. Due to this, they are now testing the second classic pivot level (1.3673). The next resistance is located at 1.3712 (R3). On the other hand, the key levels in the smaller time frame are forming supports in the area of 1.3611-24 (central pivot level + weekly long-term trend). The market situation will change once these levels are lost. In this case, the activity and significance will return to the supports of the classic pivot levels 1.3588 - 1.3549 - 1.3526.

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

Evangelos Poulakis
Analytical expert of InstaForex
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