EUR/USD: Bearish target seen at 1.2065

EUR/USD retreated from around 1.2170, a Fibonacci resistance level, and is now trading in the red for the day, nearing the 1.2100 level. The next support awaits at the 1.2065 level, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“Investors are waiting for updates from the US Congress on President Joe Biden’s stimulus package.  Progress in coronavirus immunization added to the positive sentiment, although demand for the American currency returned ahead of Wall Street’s opening.”

“The German ZEW survey showed that Economic Sentiment in the country improved in February to 71.2, while for the whole EU, it surged to 69.6 from 58.3. Also, the EU Gross Domestic Product was upwardly revised from -0.7% to -0.6% in Q4.” 

“In the 4-hour chart, the pair is gaining bearish traction, as it’s breaking below its 20 SMA, as technical indicators pierce their midlines.”

“The pair retreated from around the 23.6% retracement of its November/January rally at 121.70, with the next Fibonacci support and probable bearish target at 1.2065.”