FX.co ★ EUR/USD analysis for December 28 2020 - Targets reached and potential for the upside continuation towards 1.2250

Gove building up further optimism going into the new year

The UK is widely expected to approve the AstraZeneca/Oxford vaccine in the coming days, with the rollout then set to begin in the first week of January. The announcement is expected some time this week, as early as tomorrow so watch out for that.

While I wouldn't doubt the optimism as more vaccines are rolled out, I would take Gove's remarks with a pinch of salt. Up until Christmas eve, there has been just over 600,000 people that have been vaccinated in the UK.

While the AstraZeneca/Oxford vaccine may be easier to store/transport and is cheaper, it doesn't take away the fact that it is still going to take a long while before we see the impact of the vaccines on the health crisis in general.

Further Development

Analyzing the current trading chart of GBP/USD, I found that EUR reached our Friday's target at 1,2250 but then rejected strongly.

Anyway, the rising trend line is still active and I would watch for buying opportunities on the dips with potential for re-test of tithe 1,2215 and 1,2250.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Silver and Ethanol today and on the bottom Natural Gas and VIX.

Key Levels:

Resistance: 1,2215 and 1,2250

Support level: 1,2180