EUR/USD lost its traction after rising toward 1.1350 in the early European session but continues to trade in the positive territory near 1.1330. The US Dollar Index posts small daily losses as the benchmark 10-year US T-bond yield stays in the red below 1.8%. Investors await Wall Street's opening bell. EUR/USD has declined toward 1.1300 during the Asian trading hours on Friday but managed to erase its daily losses. The pair continues to trade near the lower end of its weekly range and technical signs suggest that recovery attempts are likely to remain limited in the short term. 

The shared currency failed to capitalize on the ECB's statement and the greenback preserved its strength in the risk-averse market environment, forcing EUR/USD to close in the negative territory on Thursday.

BULLISH AND BEARISH ENTRIES/ TARGET DESTINATION :

EUR/USD has been posting lower highs on the four-hour chart since the beginning of the week, suggesting that recovery attempts remain technical in nature. Additionally, the 20-period SMA crossed below the 100-period SMA, pointing to a bearish shift in the near term. 

Finally, the Relative Strength Index (RSI) stays below 50, confirming the view that buyers remain uninterested for the time being.

The 200-period SMA forms the first resistance at 1.1320. In case the pair stays below that level, 1.1300 (psychological level) aligns as first support before 1.1270.

On the upside, the descending trend line acts as a static hurdle at 1.1340 ahead of 1.1350, (00-period SMA and the Fibonacci 61.8% retracement of the latest uptrend) and  1.1380 (Fibonacci 50% retracement).

EURUSD Seems to Have Completed its Correction at 1.1307

Jan 21 2022