FX.co ★ EUR/USD analysis for January 26 2021 - Potential for the downside cycle and completion fo the ABC upside correction. Downside target set at 1.2125

UK January CBI retailing reported sales -50 vs -33 expected

Prior -3

• Total distributive reported sales -44 vs -25 expected
• Prior -2

That's a poor report overall as the UK retail sales gauge falls to the lowest since May last year, reflecting the toll that lockdown measures are having on retailers this month. That said, CBI noted that the actual decline should be much less severe than spring 2020.

"With the lockdown likely to remain in place in the near-term retailers expect this weakness to continue."

Looking at the details, online sales reported a surge but high-street retailers suffered - especially clothing stores.

Further Development

Analyzing the current trading chart of EUR/USD, I found that the buyers got exhausted today and the downside rotation would be probably to correct strong upside movement from recent few hours..

Stochastic reached the Overbought condition and there is potential for downside rotation towards 1,2125 and 1,2110. Watch for selling opportunities....

Key Levels:

Resistance: 1,2147

Support levels: 1,2125 and 1,2110