FX.co ★ EUR/USD analysis for January 22 2021 - Potential for the downside cycle and completion fo the ABC upside correction. Downside target set at 1.2144

• Prior 57.5
• Composite 40.6 vs 45.5 expected
• Prior 50.4

Ouch that's a bad miss. Fastest rate of contraction since May 2020. Understandably, GBPUSD not liking it and GBPUSD falling back through S1 daily pivot at 1.36663. DXY finding buyers helped by the falling GBP. Increased restrictions in the UK being felt strongly in the services sector.

Further Development

Analyzing the current trading chart of EUR/USD, I found that there is potential lfor the downside movement.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got VIX and Feeder Cattle today and on the bottom Wheat and Crude Oil.

Key Levels:

Resistance: 1,2180

Support levels: 1,2144 and 1,2080.