FX.co ★ EUR/USD analysis for January 08 2021 - Potential completion of the bigger ABC correction and space for upside continuation towards 1.2340

Euro area unemployment eased in November, defying estimates but Eurostat continues to caution that the data might underestimate the actual underlying impact of the pandemic on the region's labour market.

The figure disregards people who are registered as unemployed but are no longer looking for work or aren't available for work, so there's that to consider alongside the furlough programs that are masking actual labour market conditions.

Further Development

Analyzing the current trading chart of EUR/USD, I found that there is potential for the completion of the ABC and upside continuation.

Stochastic oscillator is showing oversold condition on the 4H time-frame, which is another indication for the upside movement.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Lumber and Nikkei 225 today and on the bottom Ethanol and Natural Gas.

EUR is slighttly negative for today...

Key Levels:

Resistance: 1,2280 and 1,2345

Support level: 1,2220