Forex Forecast: 22 – 26 January 2024 for MT4 MT5

 

Last week, our technical indicators suggested going Long at or below 1.09922, setting a Stop Loss at 1.0800, and going Short at or above 1.1000, setting a Stop Loss at 1.1135.

This week, the EURUSD price range was 1.0969 high, set this past Monday, and 1.0844 low set yesterday, Wednesday. So, on Monday, we could have bought the currency pair at 1.0934, selling it on an intraday trading at 1.0968, for 0.31% profit. Tuesday, we could have bought it at 1.0863, selling it on an intraday trading at 1.0951, for 0.81% profit. Wednesday, we could have bought it at 1.0845, selling it on an intraday trading at 1.0884, for 0.36% profit. Thursday, we could have bought it at 1.0847, selling it on an intraday trading at 1.0906, for an extra 0.54% ROI.

 Fundamental Overview

The EURUSD pair trades little changed for a second consecutive day, changing hands at around 1.0880 ahead of the United States (US) opening. The trading range is limited, as EURUSD peaked at 1.0906, while it met a bottom at 1.0876. The soft tone of Asian share markets limited the upside for the Euro, while demand for the US Dollar receded on the back of more stable government bond yields that put a halt to their latest rally.

Chinese headlines weigh on the market mood after the country released tepid macroeconomic data, spiced with trouble in the housing sector. At the same time, a resilient US economy weighed down the odds for a March rate cut, further undermining the sentiment.

Meanwhile, the Eurozone released the November Current Account, which posted a seasonally adjusted surplus of €24.6 billion, while Construction Output in the same month was down 1%. The American session will bring US Initial Jobless Claims, the Philadelphia Fed Manufacturing Survey, Building Permits and Housing Starts.

Also, European Central Bank (ECB) President Christine Lagarde will participate in a panel discussion titled “Uniting Europe’s Markets” at the World Economic Forum in Davos.

Technical Analysis

EURUSD flirts with the area of yearly lows in the mid-1.0800s

The currency pair remains under pressure and comes all the way down to revisit the 1.0850 region, or YTD lows, on the back of decent gains in the greenback.

The above daily chart for the EURUSD pair shows it trades a handful of pips above a flat 200 Simple Moving Average (SMA), providing dynamic support at around 1.0845. The 20 SMA remains far above the current level, losing its bearish strength but still suggesting bears hold the grip. Finally, technical indicators lost directional strength but remain within negative levels, maintaining the risk skewed to the downside.

The pair is at risk of falling further in the near term. EURUSD develops below a firmly bearish 20 SMA, which extends its slide below the larger ones. The moving average attracts sellers, currently at around 1.0900. At the same time, technical indicators remain below their midlines, with uneven strength, anyway reflecting the absence of buying interest.

Support levels are at 1.0845, 1.0800, and 1.0760.

Resistance levels are at 1.0900, 1.0940, and 1.0980.

For the next week, the EURUSD currency pair shows potential for an upward trajectory towards a defined level. Currently, the price lingers below a key support level zone and is close to a crucial trend line. It is poised for an upward movement following a correction that touches this trend line’s boundary.

Hence, our technical analysis is suggesting going Long at or below 1.09219, setting a Stop Loss at 1.07908, and going Short at or above 1.09759, setting a Stop Loss at 1.11395.

As of 17:52 PM (GMT+1), the EURUSD was trading at 1.08563.

 

EUR to USD forecast for tomorrow Euro to US Dollar forecast on Friday, January, 19: exchange rate 1.089 US Dollars, maximum 1.105, minimum 1.073. EUR to USD forecast on Monday, January, 22: exchange rate 1.082 US Dollars, maximum 1.098, minimum 1.066. Euro to US Dollar forecast on Tuesday, January, 23: exchange rate 1.082 US Dollars, maximum 1.098, minimum 1.066. EUR to USD forecast on Wednesday, January, 24: exchange rate 1.080 US Dollars, maximum 1.096, minimum 1.064.

In 1 week, Euro to US Dollar forecast on Thursday, January, 25: exchange rate 1.080 US Dollars, maximum 1.096, minimum 1.064. EUR to USD forecast on Friday, January, 26: exchange rate 1.084 US Dollars, maximum 1.100, minimum 1.068. Euro to US Dollar forecast on Monday, January, 29: exchange rate 1.082 US Dollars, maximum 1.098, minimum 1.066. EUR to USD forecast on Tuesday, January, 30: exchange rate 1.083 US Dollars, maximum 1.099, minimum 1.067. Euro to US Dollar forecast on Wednesday, January, 31: exchange rate 1.083 US Dollars, maximum 1.099, minimum 1.067.

Until next article, wishing all of you wealthy trading!

 

 

 

Disclosures: The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any interests in the EUR/USD or any other securities. This overview may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which has not been verified by Pedro Ferreira. Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual results that may be realized or predictive of the performance of the EUR/USD or any underlying security.  Further, Pedro Ferreira is not long or short in the currency pair. Past investment results of any underlying managers should not be viewed as indicative of future performance of the EUR/USD.

 

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