EUR/USD today: the euro is preparing for correction

The EUR/USD pair continues to trade in the side channel from 1.1370-80 to 1.1340-30 after multidirectional trading on Tuesday. The reason for the slowdown in American dollar growth was weak data on the real estate market in the United States and the restoration of optimism in stock markets, which indicated the formation of a reversal for the downward trend for this pair.

The economic calendar today is almost empty. The market is focused on the general sentiment, which is being strengthened due to the forum in Davos.

The EUR/USD pair remains in uncertainty on slowing down the decline and attempts to form a correction. The formed trade channel from 1.1370-80 to 1.1340-30 acts as a zone of uncertainty, the output of which will indicate the formation of a new movement. The breaking of resistance 1.1370-80 will provoke the closure of short positions on the pair, and can cause the test of resistance levels: 1.1420 and 1.1450. Fixation below 1.1340-30 will indicate the breaking of a three-month uptrend.

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Hanzenko Anton

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