Created on January 21, 2026

EUR/USD Analysis Summary Today

• Overall Trend: Bearish Technical Correction
• Support Levels for EUR/USD Today: 1.1590 – 1.1530 – 1.1440
• Resistance Levels for EUR/USD Today: 1.1800 – 1.1860 – 1.1920

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1650 with a target of 1.1800 and a stop-loss at 1.1560.
• Sell EUR/USD from the resistance level of 1.1800 with a target of 1.1500 and a stop-loss at 1.1880.

Technical Analysis of EUR/USD Today:

For two consecutive sessions, the EUR/USD pair has been rebounding from the support level of 1.1576 – the pair’s lowest level in two months. Gains extended to the resistance level of 1.1768, and the price is currently stabilizing around 1.1730 at the time of writing. According to performance on reliable trading platforms, the “Greenland Deal” continues to dominate the narrative for the second straight day, as traders begin to fear this is more than just a passing headline.

Generally, financial markets perceive heightened risks associated with the confrontation between the United States and Europe over the Greenland issue. As of Tuesday, Trump did not appear willing to back down from his stance on annexing Greenland to the United States, meaning that the UK and the EU will face a 10% tariff starting February 1st.

According to Forex market activity, the U.S. Dollar tends to decline as investors realize the negative economic impact of tariffs, which are largely borne by American consumers. Conversely, the Euro tends to benefit as a “large” and more liquid alternative to the U.S. Dollar, even if it is the party directly hit by Trump’s tariffs.

In general, Trump’s recent statements represented a new escalation in the Greenland dispute and confirmed the deterioration in relations between the United States and the European Union, keeping financial markets on edge. However, the euro avoided sustained losses. Its strong inverse relationship with the US dollar (USD) provided some protection, as the dollar came under pressure following Trump’s latest tariff threat.

EUR/USD Opportunities for a Bearish Breakout

The EUR/USD pair’s upward trend, as seen on the daily chart, could gain positive momentum if bulls manage to push the currency above the psychological resistance level of 1.1800. Recent gains have pushed the 14-day Relative Strength Index (RSI) towards 57, away from the neutral line, suggesting bullish momentum towards stronger upward levels if investor sentiment improves amid the recent US-EU dispute over the Greenland trade deal. Technically, the MACD indicator is also trending upwards, awaiting further positive momentum.

A EUR/USD a bearish scenario on the daily chart would require bears to push the currency back towards the support levels of 1.1655 and 1.1580, respectively. The EUR/USD’s direction today will be influenced first by statements from European Central Bank President Lagarde at 9:30 AM Egypt time. Then, most importantly, statements from US President Trump at 3:30 PM Egypt time.

Trading Advice:

We advise waiting for the EUR/USD to break through the 1.1800 resistance level before considering selling again. However, never take risks, no matter how strong the available currency trading opportunities may seem.

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The GBPJPY pair ended its last bullish rally by recording the target at 213.45, to form a strong obstacle against the attempts of resuming the bullish trend, which forces it to activate with the stochastic negativity by forming corrective rebound, to notice testing the bullish channel’s support at 212.30.

Reminding you that the repeated rise above 212.00 level which represents %2.380 Fibonacci extension level supports the chances of renewing the bullish attempts, to expect targeting 213.00 level, to attempt to surpass the mentioned obstacle, while declining below 212.00 and providing a negative close will confirm its surrender to the dominance of the bearish corrective bias, to expect suffering some losses by reaching 211.45 initially.

The expected trading range for today is between 212.00 and 213.45

Trend forecast: Bullish

The GBPJPY pair ended its last bullish rally by recording the target at 213.45, to form a strong obstacle against the attempts of resuming the bullish trend, which forces it to activate with the stochastic negativity by forming corrective rebound, to notice testing the bullish channel’s support at 212.30.

Reminding you that the repeated rise above 212.00 level which represents %2.380 Fibonacci extension level supports the chances of renewing the bullish attempts, to expect targeting 213.00 level, to attempt to surpass the mentioned obstacle, while declining below 212.00 and providing a negative close will confirm its surrender to the dominance of the bearish corrective bias, to expect suffering some losses by reaching 211.45 initially.

The expected trading range for today is between 212.00 and 213.45

Trend forecast: Bullish

GBP/USD Technical Analysis

The Euro had rallied against the US Dollar, but the British Pound has given back most of the gains already. So, with that being the case, I think you have to look at this as a situation where the 1.35 level continues to be a major barrier that just can’t be broken. If we do break above there, it’s really not until we break above 1.3550 that you start to talk about a move to the upside. This to me looks like a drop, a bounce, and perhaps a rollover. We’ll just have to wait and see. We did get claimant count change numbers earlier in the session, but it was slightly more negative, not really enough to affect the currency market, though in my estimation, directly.

EUR/GBP Technical Analysis

You can see what the strength of the Euro has done to the Euro against the British Pound. I still think this is a market that rolls over, but now we have to reset, and we’ll have to keep an eye on that 0.8750 level because this is an area that’s been important multiple times. If we do start to see the Euro roll over against the dollar, we’ll have to wait, but I think that probably will have an influence here as well.

So, with all of that being said, I like fading signs of exhaustion. We could send this market down to the 200-day EMA again, but if we clear 0.8750, I probably step back from this pair for a while.

For a look at all of today’s economic events, check out our economic calendar.

– Written by


Frank Davies

STORY LINK GBP/USD Forecast: Pound Sterling Advances as Dollar Falters on Tariff Threats

The Pound to US Dollar exchange rate (GBP/USD) pushed higher on Tuesday, touching a one-week peak amid escalating tariff concerns linked to Greenland and a mixed UK labour market report.

At the time of writing, GBP/USD was trading at $1.3450, up approximately 0.2% on the session, although it had slipped back slightly from earlier highs.

The US Dollar (USD) struggled to find support as renewed tariff warnings from President Donald Trump weighed on the American currency.

Trump signalled his intention to impose new trade levies on eight European countries opposing his proposed acquisition of Greenland, sharpening tensions between the US and several long-standing allies.

The prospect of a broader US-EU trade dispute unsettled markets, with investors increasingly uneasy about the potential drag on US growth and the risk that European governments could curb their holdings of US Treasuries.

These concerns lingered into the session as Trump doubled down on his position, brushing aside diplomatic criticism from European leaders and keeping the ‘Greenback’ under pressure.

Meanwhile, the Pound (GBP) advanced against the US Dollar as markets took a broadly constructive view of the UK’s latest labour market data, despite the figures offering a mixed picture.

Employment rose by 82,000 in the three months to November, comfortably beating expectations for a 27,000 increase. However, the unemployment rate remained stuck at a multi-year high of 5.1%.

Wage growth continued to cool, although pay increases still outpaced inflation.

Taken together, the data proved sufficient to underpin Sterling on Tuesday, allowing the Pound to gain ground against a weaker US Dollar.

GBP/USD Outlook: UK Inflation Data in Focus

Looking ahead, attention is likely to turn to the UK’s forthcoming consumer price index release, which could shape near-term direction in the Pound to US Dollar exchange rate.

Markets expect headline inflation to have edged higher in December, rising from 3.2% to 3.3%, while core inflation is forecast to have held steady at 3.2%.

If inflation proves stubborn, traders may scale back expectations for a near-term Bank of England rate cut, potentially offering Sterling further support. Conversely, any downside surprise could revive dovish expectations and place the Pound under renewed pressure.

For the US Dollar, the data calendar remains light, leaving USD sentiment closely tied to political developments.

Continued focus on President Trump’s tariff threats and rhetoric surrounding Greenland may sustain a broader ‘sell-America’ tone, keeping the ‘Greenback’ on the defensive.

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