Technical analysis of EUR/USD for 30/01/2019:
The uptrend momentum is decreasing, will 61% Fibo be hit?
Technical market overview:
The bulls were too weak to break through the local technical resistance at the level of 1.1449 and the price was pushed lower towards the level of 1.1425 again. Currently, the market is consolidating the latest gains in this local range (1.1449 - 1.1425), but it looks like the upward momentum is decreasing. Moreover, the market conditions are now overbought and there is a visible bearish divergence between the price and momentum, so any move towards the 61% Fibonacci retracement at the level of 1.1462 would be a spike up only (12 pips breakout only) and the market should start to develop a deeper pull-back.
Weekly Pivot Points:
WR2 - 1.1506
WR1 - 1.1469
Weekly Pivot - 1.1377
WS1 - 1.1339
WS2 - 1.1268
Trading recommendations:
All buy orders from the lows of the level 1.1300 should be now set to trailing stop as the target for them is seen at the level of 1.1462. A strong price reaction is expected at the level, so it will be better to close the buy orders there. The traders who accept more risk might consider opening the sell orders directly from the level of 1.1462.
