fbEURUSD Forecast | EURUSD forecast bearish despite bigger rise in producer prices in Germany | IFCM UK

Technical Analysis EURUSD : 2021-01-20

Recommendation for EUR/USD:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 1.2113

Sell Stop

Above 1.2157

Stop Loss

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Senior Analytical Expert
Articles 1733
IndicatorValueSignal
RSI Neutral
MACD Sell
Donchian Channel Neutral
MA(200) Sell
Fractals Neutral
Parabolic SAR Sell

Chart Analysis

IFC Markets Tech Analysis

The EURUSD technical analysis of the price chart on 1-hour timeframe shows EURUSD: H1 is retracing under the 200-period moving average MA(200) which is falling itself. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.2113. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.2157. After placing the order, the stop loss is to be moved to the next fractal high indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Producer prices in Germany rose more than expected in December. Will the EURUSD retreat reverse?

Producer prices in Germany rose more than expected in December: the Destatis reported German PPI rose 0.8% over month in December after 0.2% gain in November, when an 0.3% increase was forecast. This is bullish for EURUSD. However, the current forecast is bearish for EURUSD.

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