FX.co ★ EUR/USD analysis for January 28, 2022 - Strong breakout to the downside and potential for bigger drop

Technical analysis:

EUR/USD has been trading sideways today at the price of 1,1150 but there is still potential for the downside continuation due to strong downside cycle in the background.

Trading recommendation:

Due to strong downside momentum in the background and the breakout of key multi year pivot at the price of 1,1185, I see potential for bigger drop in next period.

My advice is to watch for selling opportunities on the rallies with the downside objective at 1,1020

Resistance is set at the price of 1.1185