EUR/USD Forecast: Bearish And Pressuring A Mid-Term Fibonacci Support Level

EUR/USD Current Price: 1.2078

• Market players awaiting first-tier events to take place later in the week.
• Focus on the US Joe Biden´s inauguration next Wednesday.
• EUR/USD bearish and pressuring a mid-term Fibonacci support level.

The American dollar kept advancing this Monday, with EUR/USD reaching a one-month low of 1.2053, bouncing just modestly from the level to settle in the 1.2070 price zone. A holiday in the US kept major pairs confined to tight ranges during the American afternoon, as investors await for first-tier events later in the week. The European macroeconomic calendar had nothing relevant to offer, and trading remained dull, although with the greenback retaining its strength.

This Tuesday, Germany will publish December inflation figures and the January ZEW survey. The Economic Sentiment is seen contracting both in the country and the EU. The US won’t publish relevant macroeconomic data, with the focus on the US Joe Biden´s inauguration next Wednesday.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair has room to test the critical 1.2000 threshold. The pair is trading around the 38.2% retracement of its November/January rally at 1.2062. A sustained decline below the level should open the door for a steeper decline. In the near-term, and according to the 4-hour chart, the risk remains skewed to the downside, as the 20 SMA heads firmly lower below the larger one and above the current level. Technical indicators remain within negative levels, far from indicating an interim bottom.

Support levels: 1.2050 1.2010 1.1970  

Resistance levels: 1.2090 1.2130 1.2180  

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