FX.co ★ EUR/USD analysis for January 14 2021 - Bracketing market and potenttial for the rally towards 1.2168

Government will continue strong response to pandemic

• But measures can only be temporary
• We will do everything in our means to guarantee this will be the a recovery year
• But economy likely to grow less than previously expected this year

Given how the virus restrictions are still likely to stay in place throughout Q1 and potentially until April, that does chip away at much of the optimism towards the end of last year.

This also adds to headwinds for the euro and European assets as the virus situation across the region still warrants more lockdown measures for the time being. The recent political drama in Italy only adds to the list so far to kick start the new year.

Further Development

Analyzing the current trading chart of EUR/USD, I found that there is test of the balance low based on the hourly time-frame, which might be the condition for the rejection.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Ethanol and Lumber today and on the bottom Canola nad Lean Hogs.

EUR is slightly negative today butt with no strong momentum.

Key Levels:

Resistance: 1,2167

Support level: 1,2135