FPG EURUSD Market Report January 2, 2026

On the EURUSD H1 chart, after previously staging a bullish rally from 1.1714 to 1.1807, price faced strong rejection near the peak, triggering a clear short-term trend reversal. Since then, EURUSD has shifted into a bearish channel structure, with the pair currently trading around 1.1750. Although price briefly broke below the channels diagonal support, buying interest emerged from a demand zone, leading to a corrective rebound that pushed price back inside the bearish channel.

From a technical perspective, EURUSD remains capped below descending dynamic resistance, confirming that bearish pressure is still dominant despite the recent bounce. Price action continues to respect the bearish channel structure, indicating that the recovery is corrective rather than trend-reversing. MACD (12,26,9) remains slightly below the zero line, reflecting weak bullish momentum and an absence of strong trend acceleration. Meanwhile, MFI (14) is hovering around the neutral zone near 50, suggesting balanced flow between buyers and sellers and reinforcing the current consolidation within a bearish bias. Overall, technical indicators point to a market that is stabilizing but still lacks sufficient momentum to invalidate the prevailing bearish structure.

Entering early 2026, market price behavior still appears to be an extension of the late-2025 trend rather than the start of a fresh directional move. The absence of strong economic catalysts and limited high-impact data releases today reduces the likelihood of aggressive trend shifts in the near term. As a result, EURUSD is expected to remain technically driven, with traders likely positioning cautiously ahead of potentially stronger macro drivers scheduled for next week.

Market Observation & Strategy Advice

1. Current Position: EURUSD is trading around 1.1750, recovering modestly after bouncing from a demand zone.

2. Resistance Zone: Immediate resistance is located near 1.1771, aligned with the upper bearish channel boundary.

3. Support Zone: Key support lies around 1.1719, where prior buying interest was observed.

4. Indicators: MACD remains negative while MFI stays neutral, indicating limited directional conviction. The broader intraday structure remains bearish, with price movement viewed as corrective.

5. Trading Strategy Suggestions:

• Sell on rally: Look for bearish confirmation near the upper channel resistance around 1.1771.

• Short-term range play: Conservative traders may consider range-based setups within the channel until a clear breakout occurs.

• Risk management: A sustained break above 1.1807 would weaken the bearish outlook and warrant reassessment.

Market Performance:

Forex Last Price % Change

USD/JPY 156.85 +0.33%

GBP/USD 1.3455 −0.08%

Today's Key Economic Calendar:

UK: Nationwide Housing Price MoM & YoY

CA: S&P Global Manufacturing PMI

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investments involve risks, and past performance does not guarantee future results. Consult your financial advisor for personalized investment strategies.