Analytical review of the EUR/USD currency pair with the forecast for Tuesday (Jan 12)

Yesterday\'s movement on the EUR/USD currency pair had a lateral character with a new local high fixation near 1.4555.

Only during the first trading hours in Asia the pair could grow by 74 points, then it started the side motion. Such Asian increase may be connected with weak fundamental data on the USA which were published on Friday\'s evening.

Considering the fact that the macroeconomic statistics on Monday were rather moderate and there were no reasons either for rise or for decline, all the trading at the European and American sessions conducted in the channel of 1.4483-1.4534.

The trading day closed in favor of the Euro which raised by 84 pips versus the US dollar.

Technical picture:

I want to turn your attention to the fact that the lateral motion remains in wider channel of 1.4447-1.4555, but the pair\'s upturn is not excluded in short — term outlook.

During yesterday\'s trades the 100 day exponential moving average (the green line) crossed the 200 day exponential moving average bottom-up which said about possible upward movement renewal. But don\'t looking ahead, as the pair has been flatly trading for a long time and the critical time will appear only when the price strengthens above the level of 1.4571, where the 38.2% correction Fibo level is located, starting from the high of Nov 25, 2009.

Bollinger bands after yesterday\'s growth point to the reduction in liquidity. the trading is in its low part and the middle line, located near 1.4511, is restricting the pair\'s surge.

MACD indicator is at the zero mark signaling about a lateral pair\'s motion.

Today\'s recommendations:
The support levels: 1.4447, 1.4406, 1.4352.
The resistance levels: 1.4555, 1.4571, 1.4614.

Today I recommend to buy the pair at 1- hour timeframe closing above the level of 1.4524 with the target — T/P 1.4627 and S/L 1.4464.
Sell the pair at 1- hour timeframe closing below the level of 1.4449 with the target — T/P 1.4346 and S/L 1.4499.

Best regards,
Analyst: M. Magdalinin.