EUR/USD is under mild-pressure, critical support seen at 1.2060

The American dollar catches a bid ahead of Wall Street’s opening, pushing EUR/USD sub-1.2100 after the pair rose to 1.2157 earlier in the day. EUR/USD is neutral-to-bearish in the near-term and sees critical support at 1.2060, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The EU published the final versions of its December inflation, which was confirmed at -0.3% YoY.”

“Investors are now waiting for Joe Biden’s inauguration, and the executive orders he announced for his first day in the office. He plans to revert some of Trump’s measures, although the only reference to fiscal policy was made by Janet Yellen. Decisions on taxes or international trade may impact financial markets. Also, political turmoil could introduce some noise.”

“Technical indicators turned south, the Momentum holding within positive levels but the RSI already at 45, skewing the risk to the downside. A steeper decline could be expected on a break below 1.2060, the 38.2% retracement of the November/January rally.”