At yesterday's trading, the main currency pair of the Forex market again tried to rise above the level of 1.2300, however, the euro bulls again failed. Thus, the mark of 1.2300 continues to provide strong resistance to the ongoing growth and remains unconquered.
Meanwhile, a real battle is taking place in the United States of America for the Senate, which is still under Republican control. The state of Georgia was visited by the current President Trump, who at the rally made it clear that he might return to the presidential chair. Also, Donald Trump said that it is no good when you steal the victory in the presidential election. Although Trump has lost almost all the courts on claims of voting fraud in the US presidential election, he continues to claim that he was robbed of victory and the election was won by him, and not by his Democratic opponent Joe Biden. Well, maybe this is true, but in a few weeks the victorious Biden will take office, and Trump will have nothing left to do but leave the Oval Office of the White House.
In the European Union, the problems are quite different, where no one is contesting any elections because of their absence. The main topic for the European Union is the vaccination of the population against the COVID-19 pandemic. So far, this process is very slow. It is enough to give an example that in France over 500 people were vaccinated for a whole week. The figure is so small that it does not even need additional comments.
Daily
Well, it's time to move on to the technical picture for the EUR/USD currency pair. As mentioned at the beginning of the article, at yesterday's trading, the euro bulls again tested a strong resistance level of 1.2309 and again failed. As a result, a candle with a small bullish body appeared on the daily chart, however, the upper shadow of this candle is very large. Usually, such candles indicate the inability to continue growth and lead to a change in the trend. We'll see what happens this time. Likely, the fundamental indicators that will come from the United States this week will have a strong say. First of all, this is data on the labor market for the last month of last year. However, in addition to nonfarms, market participants will have to digest the production index of the Institute for Supply Management, which will be published today, at 16:00 London time. And on Thursday, attention should be paid to the index of business activity in the service sector from the Institute for Supply Management (ISM).
As for the purely technical picture, after the appearance of yesterday's candle, the chances of bulls and bears are approximately equal. I recommend considering purchases after a decline in the area of 1.2240, with targets not higher than 1.2300, and it is better to limit the profit to 1.2270/80. Sales should be considered if a bearish candlestick analysis pattern appears below 1.2300 on the four-hour or hourly charts. That's all for now. If the situation for EUR/USD changes, the necessary adjustments for the possible opening of positions will be made in tomorrow's article.