Forex: technical overview 16.01.18

EURUSD

The pair is trading at the new local maximum point as the ECB is expected to abandon the economic stimulus policy this year. However, the pair is strongly technically overbought, which may result in a decline if today’s consumer inflation data in Germany doesn’t display any positive tendency.

The price is above the middle line of the borders of Bollinger bands, below EMA 5, but above EMA 13. RSI is in the overbought zone. Stochastic oscillators are leaving the overbought territory.

Trading recommendations:

It’s possible that the pair falls down to 1.2200 or even further down to 1.2185.