Eur/Usd: No signal of break above 1.10 – Prediction – January 9, 2024

The Euro-Dollar exchange rate (EUR/USD) is still trading in the sideways phase, but we have not found any concrete chances of breaking the psychological resistance at 1.10 and could at least stay between 1.09 and 1.10 without any particular surprises. For the rest of this week.

Of the two conflicting scenarios, the bearish scenario is the most likely in my opinion. I think this is the most likely option. Not only because clouds are already on the horizon, but because the resistance at 1.10 can only be broken by a push from each central bank. In this context, the euro-dollar exchange rate could return to testing intermediate support levels such as 1.092 before falling below 1.09.

Likewise, even if a bullish rally occurs, if the rise crashes without breaking the psychological resistance line at 1.10, the resulting rebound could easily trigger a trend reversal.

Therefore, while maintaining the downtrend described so far, I think it would be prudent to look beyond the support of 1.09 and focus on the intermediate level of 1.088 and the subsequent target of 1.085. These intermediate supports can easily contain a larger decline.