EUR/USD forecast for the week of January 11, 2016, Technical Analysis

The EUR/USD pair fell significantly during the course of the week, even dropping below the 1.3 level. However, the weekly candle ended up being a hammer, so it suggests that the market is going to try to rally. We see a significant amount of resistance at the 1.1050 level above though, so having said that it’s not until we get above there that we are comfortable buying from a longer-term perspective. Given enough time, we believe that the market could break out, but between now and then we anticipate that there will be bullish pressure, but perhaps it will be easier to take advantage of it on shorter-term charts.