Wednesday, January 20

EUR/USD Price Analysis: Buyers aim for 1.1758/60 resistance confluence

  • EUR/USD takes the bids near one-week amid hopes of a blue wave in US elections.
  • 100-bar SMA, a falling trend line from October 23 offers a tough nut to crack for the bulls.
  • Sellers look for entries below 1.1695, RSI favors further upside.

EUR/USD rises to 1.1748, currently around 1.1742, while probing one week top during Wednesday’s Asian session. The pair recently benefited from the forecasts of the US presidential election where Democrats keep the market favorite status.

While strong RSI conditions, also not near the 70 overbought level, favor the bulls to aim for the confluence of 100-bar SMA and a short-term descending resistance line around 1.1758/60.

Though, any further upside past-1.1760 will need to be backed by market optimism and a sustained clearance of 61.8% Fibonacci retracement of October 21 to November 02 downside, at 1.1782, to aim for the 1.1800 threshold.

During the EUR/USD buyers’ dominance beyond the 1.1800 round-figure, the October 23 high of 1.1864 and the previous month’s peak surrounding 1.1880 will be in the spotlight.

On the flip side, a horizontal area around 1.1700-1695 restricts the pair’s short-term declines ahead of recalling the early-month top near 1.1655 on the chart.

EUR/USD four-hour chart

Trend: Bullish

Credit: FX Street

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