FX.co ★ EUR/USD analysis for March 02 2021 - Potential for another downside movement towards 1.1960

Q3 final number was +40.3% q/q annualized

• December GDP +0.1% m/m vs +0.1% expected
• December GDP -3.0% y/y vs -3.0% expected
• November GDP was -2.8% y/y
• November GDP +0.8% m/m
• January GDP flash estimate +0.5%
• 18 of 20 sectors grew in Q4

The annualized number is much stronger but the December data is in line. Total activity is 3% below pre-pandemic levels.

Retail trade was down 3.3% in December as governments put on lockdowns right after Christmas but even non-store retail (online) was down 1.1% in the month due to the secular move towards earlier Christmas shopping.

Further Development

Analyzing the current trading chart of EUR/USD, I found that the downside trend is active and that preferable strategy under this condition is to sell on the rallies.

Key Levels:

Resistance: 1,2040

Support levels: 1,1990 and 1,1950.