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20 Jan 2020
EUR/USD London Price Forecast: Euro corrective bounce near 1.1000 handle
- EUR/USD is starting the new trading week near January lows.
- A bounce from current price levels can lead to 1.1125 and 1.1150.
EUR/USD daily chart
The euro is trading in a weak bear trend below the 200-day simple moving average (SMA). EUR/USD is starting the new week just below the 1.1100 level and the 50 SMA.
EUR/USD four-hour chart
The spot is trading below its main SMAs, suggesting an underlying bearish bias. However, the market is challenging the January lows in the 1.1100/1.1090 support zone. At the start of the new week, if the bulls defend this area EUR/USD is more likely to bounce in the London session. Potential targets to the upside can be seen near 1.1125 and 1.1150.
On the flip side, if the market decides to breach 1.1100/1.1090 support zone, EUR/USD could continue to drop towards the 1.1067, 1.1033 and 1.1000 levels; according to the Technical Confluences Indicator.
Additional key levels