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EURUSD: Momentum Starting to Shift to Sellers?

jeffriess
January 13, 2021
by Joseph Jeffriess, Market Analyst

Risk remains under pressure today as the USD continues to make a small comeback in today’s London session. Looking at the EURUSD, one of the many pairs you can trade with Eightcap, we continue to follow the trend break that occurred on the 8th of January. Buyers made a small fightback yesterday but for now, pressure remains from sellers.

Looking at the chart below we can see sellers have started to format new lower high after the trend break. A rejection of a yesterday’s up bar starts to put in play a new extension lower possible to test the main trendline.

Euro vs US Dollar Daily chart, 13 January 2021

EURUSD D1 Chart

We have to keep in mind for now that this market remains in a longterm uptrend and the current move could just be short term corrective move. A move back to the main trend line and or a break of that line starts to suggest something more but for now, we want to see if sellers are able to break yesterday’s low confirming seller control on the short-term.

We have no high impact USD or EUR data due in today’s EU or US sessions.

All times are AEST.