FX.co ★ EUR/USD analysis for December 22 2020 - Potetnial for upside continuation and ttest of 1.2325

BOE's Haldane: UK economy still in a deep hole

BOE chief economist, Andy Haldane, remarks to Guardian newspaper

• UK jobs support should end only when virus crisis is over
• Economy still in a hole, and the hole is still deep
• Hopeful of a rapid bounce in activity thanks to the vaccine

As mentioned previously, the BOE has their hands tied by the Brexit saga at this point in time. While further easing measures are imminent, they still have to time it correctly.

Further Development

Analyzing the current trading chart of EUR, I found that the sellers got exhausted today and that buying continuation is on the way.

My advice is to watch for buying opportunities on the intraday pullbacks with the upside targets at 1,2275 and 1,2325 (Fibonacci projections).

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Ethanol and Lumber today and on the bottom VIX and Copper.

Key Levels:

Resistance: 1,2277

Support levels: 1,2205 and 1,2130