EUR/USD Outlook (21 January 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD bounced up from the support zone of 1.20750.

The final CPI y/y data released yesterday indicated no revision in the inflation figures from the preliminary release.

• Final CPI y/y (Actual: -0.3%, Forecast: -0.3%, Previous: -0.3%)
  
• Final Core CPI y/y (Actual: 0.2%, Forecast: 0.2%, Previous: 0.2%)
  

The European Central Bank (ECB) will be announcing their monetary policy decision later at 2045 (SGT). It is expected that the central bank will be holding interest rate unchanged at 0.00%. With the worsening condition of COVID-19 in the eurozone leading to the return of lockdown measures and restrictions in several European countries, pay attention to whether the ECB is considering to carry out any new monetary policy stimulus.
The ECB will also be holding a press conference at 2130 (SGT). During this time, volatility is expected of EUR.

The eurozone Consumer Confidence data (Forecast: -15, Previous: -14) will be released later at 2300 (SGT).

EUR/USD’s next support zone is at 1.20750 and the next resistance zone is at 1.23170.
Look for short-term buying opportunities of EUR/USD.