EUR/USD tries to gather momentum - Technical Analysis 21-01-2016
EUR/USD traded in a tight range in the intraday levels, leaning on the SMA50 in an attempt to gain some positive momentum that would help it rise again to attack the important resistance of 1.0974, which represents the ratio 38.2% of Fibonacci retracement levels for a descending wave in the medium term (from 1.1713 to 1.0517), while attempting to vent off that overbought saturation that was apparent in relative power indicators as shown below the attached chart.
Therefore we expect the pair to rise, as the long as the resistance of 1.0974 is broken through, targeting thereafter the resistance of 1.1115, which represents the ratio 50% of the same retracement levels.
Trend
Bullish