Trend analysis (picture 1)
On Thursday, EUR/USD is likely to carry on with its downward move from 1.2110 which is the closing price of yesterday's daily candle. The downward target is 1.2063 which is a 38.2% retracement plotted by the red dash line. On the other hand, when this level is tested, it is possible to trade on a retracement upwards with a target at 1.2150 which coincides with resistance plotted by the white thin line.
Today don't miss a batch of important news for the US dollar, in particular the US GDP for Q4 2020, a trade balance report, and a weekly update on the US labor market. This data is due during the New York trade. Market participants could carry on trading EUR/USD downwards.
Picture 1 (daily chart)
Complex analysis
Indicator analysis – downwards
Fibonacci levels – downwards
Trade volumes – downwards
Trend analysis – downwards
Bollinger bands – downwards
Weekly chart – downwards
Conclusion
On Thursday, EUR/USD is likely to carry on with its downward move from 1.2110 which is the closing price of yesterday's daily candle. The downward target is 1.2063 which is a 38.2% retracement plotted by the red dash line. When this level is tested, it is possible to trade on a retracement upwards with a target at 1.2150 which coincides with resistance plotted by the white thin line.
Alternative scenario
The currency pair could carry on with a downward move from 1.2110 which is the closing price of yesterday's candle. The downward target could be at 1.2063 which is a 38.2% retracement plotted by the red dash line. When this level is tested, the price could extend its down move with a target of 1.2004 which the lower border of Bollinger bands plotted by the black dash line.
