FX.co ★ EUR/USD. January 10. Two bullish divergences may send the euro higher, but both trading ideas to sell remain valid

EUR/USD - Daily.

As seen on the 24-hour chart, the EUR/USD pair has performed a consolidation under the upward small corridor, which increases the pair's chances to go further in the direction of the lower border of the downward trend corridor or approximately the level of 1.0851. The long-term trading idea remains valid, but its implementation may take from a week to two.

EUR/USD - 4H.

On January 9, the EUR/USD pair continues the process of falling towards the corrective level of 61.8% (1.1080) on the 4-hour chart. At the same time, two bullish divergences are now brewing for the MACD and CCI indicator, which warns traders about a possible reversal of the pair in favor of the European currency and some growth in the direction of the corrective level of 38.2% (1.1141). I also tend to the option of rolling back the pair's quotes from the current levels up. And it is after the completion of the correction that I expect the pair to resume falling in the direction of the target levels of 76.4% and 100.0%.

Forecast and trading recommendations for EUR/USD:

The long-term trading idea remains in force, as the pair's quotes performed a consolidation under the upward small corridor. Traders get a target for a drop of about 250 points - around the level of 1.0850.

On the second trading idea, I expect a fall during the week to the corrective levels of 1.1042 and 1.0981. Two bullish divergences eloquently indicate a likely correction that can be used for new sales with designated goals.