We're neutral | 18 January 2021

Technical observation

EUR is trading with an increasing bearish bias below a resistance line 1.2249. I expect this bearish movement to continue to the supportive zone 1.1450-1.1513 followed by a bounce within it for a momentum to the upper side. My advice, remain flat and wait for correction to the zone mentioned above and a rejection within it to buy EUR with your take profit at 1.2249 and stop loss at 1.1144. Should there be a clear breakout above the line 1.2249 with a big green candle, I expect a further rally to the upper side to the resistance line 1.3429 after a correction to the just broken line and a bounce at it.

Trade recommendation

Remain neutral.