FX.co ★ EUR/USD Price Analysis for 6 January 2021

EUR/USD is trading just below 1.2350, the highest since 2018 as the safe-haven dollar is falling. Democrats are leading Georgia's special runoffs, opening the door to more fiscal stimulus.

The recent surge has placed momentum on the four-hour chart on positive ground while the Relative Strength Index is below 70 – outside overbought condition which is a bullish scenario for EUR/USD .

Against this, EUR/USD is now expected to approach the 1.2400 mark in the short-term horizon. Further north of this hurdle aligns 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high).

Support awaits at 1.2300, the former double top, followed by 1.2275, a high point in mid-December. Further down, 1.2240 and 1.2210 await EUR/USD.