EUR/USD Outlook (20 January 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD broke above the key level of 1.21.

The German ZEW Economic Sentiment data released yesterday indicated an increased optimism in the outlook of German’s economy despite the return of the COVID-19 lockdown. The eurozone ZEW Economic Sentiment data released indicated a strong increase in optimism in the outlook of the eurozone economy.

• Eurozone ZEW Economic Sentiment (Actual: 58.3, Forecast: 54.1, Previous: 54.4)
  
• German ZEW Economic Sentiment (Actual: 61.8, Forecast: 55.1, Previous: 55.0)
  

The final CPI y/y data will be released later at 1800 (SGT).

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

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.