FX.co ★ EUR/USD analysis for December 29 2020 - Firsst ttarget at the price of 1.2250 has been reached, second target in play at 1.2270

Will Republicans keep hold of the Senate or can Democrats seize control?

The two runoff elections will take place on 5 January next year i.e. next Tuesday, with plenty on the line in determining how US politics will shape up under Biden's administration over the coming year(s).

As things stand, Republicans hold 50 seats and Democrats 48 seats in the Senate.

For Republicans to keep control, they would only need to win one of the two runoffs while Democrats need to win both to technically take control of the Senate. A tie will result in vice president-elect, Kamala Harris, breaking the deadlock.

In terms of hardcore Biden policies, the results here won't matter but the optics on its own may be enough to at least get the market feeling more relieved if Congress isn't divided

Further Development

Analyzing the current trading chart of EUR, I found that the EUR reached my first yesterday's target at 1,2250 and is heading towards the second target at 1,2270.

Watch for potential buying opportunities on the dips with the the target at 1,2270.

Stochastic oscillator is showing the fresh bull cross, which is confirmation for the upside continuation.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Ethanol and Nikkei today and on the bottom Lumber and VIX.

Key Levels:

Resistance: 1,2270

Support level: 1,2235