EUR/USD: Next Resistance At 1.2200/1.2220

Yellen has made the case for more stimulus so stocks are pushing price higher once again while the is down ahead of Biden’s inauguration.

Notice that stabilized around 1.2050 area after the price retraced back to the starting point of the wedge pattern, also know as ending diagonal. This was actually a perfect textbook development following a wedge top formation at 1.5250. But now, the question is, where from here? Based on Elliott wave theory, I think that drop from 1.2349 is strong so ideally it’s still only wave A of a higher degree three wave structure that will be expected to resume after wave B rally that can stop at 1.2220 resistance zone.

This view remains unchanged as long as market trades below 1.2349.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.