EUR/USD Mid-Session Technical Analysis for January 26, 2021

　　The Euro is trading higher against the U.S. Dollar at the mid-session on Tuesday as sentiment among German exporters in the industrial sector improved significantly this month, hitting its highest since October, Ifo economic institute said on Tuesday.

　　“Clarity on Brexit and the U.S. presidency, a robust industrial economy and the start of global vaccinations have led to cautious optimism in the German export industry,” Ifo President Clemens Fuest said.

　　At 15:26 GMT, the EUR/USD is trading 1.2164, up 0.0023 or +0.19%.

　　The main trend is up according to the daily swing chart. A trade through 1.2190 will signal a resumption of the uptrend. The main trend will change to down on a move through 1.2054.

　　Taking out 1.2190 will not only change the trend to up, but it will also make 1.2108 a new main bottom.

　　The minor range is 1.2054 to 1.2190. Its 50% level at 1.2122 is new support.

　　The main range is 1.1800 to 1.2349. Its retracement zone at 1.2074 to 1.2010 is controlling the near-term direction of the EUR/USD.

　　The short-term range is 1.2349 to 1.2054. Its retracement zone at 1.2202 to 1.2236 is the primary upside target zone. Taking out 1.2236 could trigger an acceleration to the upside.

　　The direction of the EUR/USD into the close is likely to be determined by trader reaction to 1.2122.

　　Bullish Scenario

　　A sustained move over 1.2122 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into 1.2190, followed closely by 1.2202.

　　Sellers could come in on the first test of 1.2202, but if buyers can overtake this level, the rally could extend into 1.2236.

　　Bearish Scenario

　　A sustained move under 1.2122 will signal the presence of sellers. Taking out 1.2108 will indicate the selling is getting stronger. This could drive the EUR/USD into 1.2074 to 1.2010.